Troubles are back in CDO-land and the various indexes tracking credit default swaps for mortgage securities are all making fresh new lows. You can follow all the charts at Markit - here are just a few.
This one tracks residential mortgages, the tranches with BBB- ratings. Collapse is a fair description.

These charts are inverted because they track yield spreads, so the higher they go the worse things are. Merely for comparison purposes I have included charts for the same ratings as above.
Mr Krugman has also written an excellent op-ed to NYT today. Check it out - it deals with this very issue.
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