People talk glibly about billions as though they were loose...

People talk glibly about billions as though they were loose change. A billion $'s is a 1000 million $'s and even these days is not to be sneezed at.

The problem and the risk with the whole subprime sector is that people are playing with huge leverage. One can pretty well assume that like a learner driver given a Lambo, some don't have the requisite skill to safely handle that much power.

As to where we go now, well, we can all have a go at calling the next move but the most valuable phrase in a traders vocabulary is "I don't know".
In the end the markets will do whatever they want.

Trade well.