Exactly hitting the nail on the head here. That 80% is the debt,...

Exactly hitting the nail on the head here. That 80% is the debt, leaving 20% as equity. Shareholders equity to be exact.

Now if asset prices have fallen more than that....equity GONE.

Sure, in the past....not a problem.

In todays credit crunch, add in forced selling, shortage of buyers, difficulty in raising equity let alone debt....and that 20% is looking shakey.

This really explains why people are still deserting. Still too early to pick a bottom on this. And all this talk of I am happy to lose 6c then sell...clearly not everyone agrees...hence why people are still selling, in a last ditch effort to preserve some capital.

Kiril.