[Cshelton]

Yes. See my comment in this same reply thread. It isn't the banks. It is the funds who invested in these AAA bonds backed by a very diverse CRE portfolio. Who owns these funds? Avg. Americans. Pensions/retirement/etc. They are already close to the breaking point with the forbearance. The fed/Fannie/Freddie will need to step up next, but that won't last long either.

[williamtwild]

So what is a layperson to do ? Should I take out the money now while it is still there?

[lmm]

There's no real way to hedge against a crisis - almost by definition, everything goes down in a crisis. But as Buffet says, be greedy when others are fearful; if anything now is the time to spend what you put aside in good times, and make the cheap but risky investments that other people don't dare to. (E.g. I just booked a holiday for next year at a huge discount, which is good for me and good for the economy - I get a good deal, the airline and the hotel get a chance to stave off bankruptcy. Of course I'm taking the risk of the airline or the hotel going bankrupt)

[humaniania]

Stop worrying and let it ride. Don't listen to anonymous people on the internet that tell you the sky is falling. Stock up on pasta and canned goods if it makes you feel better, but you don't have to worry, everything will almost certainly be fine.

[jonathanliu]

We're not at that point yet.

[aurelius12]

Once it's clear to everyone that we're there, it's too late though.

[jonathanliu]

True, so just make sure you're one of the first few to panic.