I see nothing in the article indicating any analysis of how it will impact the larger economy.
It’s an emotional setup, pure and simple.
The stock market opened lower this morning on something that happened in France earlier today...
Just throwing these possibilities out there:
Liquidity at the top end of the financial markets will dry up. Mortgage backed securities will go down in value. This will hurt share prices of any companies investing in them or earnings of companies originating/selling them. Redemptions from funds that hold them will suck up liquidity. Holds on redemptions will follow, which locks up liquidity of investors.
Liquidity at the bottom end will dry up. More diligent underwriting and tighter lending standards will remove even more buyers from the market, further depressing home prices and hurting builders, Realtors, title companies, insurance companies.
As the velocity of money slows, the efficiency of the markets deteriorate. Falling asset prices result. This makes people feel poorer and more conservative about spending, thus, the retail sector will suffer.
The Fed cuts rates and prints money, but that pushes the dollar to a tipping point, and China, Japan, and others dump out of the dollar, causing it's collapse.
Hillary raises income taxes, capital gains, and death taxes, and institutes a new personal property tax on the wealthy (anyone with a job) to pay for national sickness care, and surrenders in Iraq and Afganistan.
-OR-
Just a bump in the road to Dow 20,000 by 2010.