This is a rare occasion for me. Although I will be occasionally extraordinarily bearish, I virtually never advocate panic selling. Today is going to be that occasion. If you are a holder of the E-Tracs Monthly Pay 2xLeveraged Mortgage REIT Exchange Traded Note (MORL), sell it. Immediately. There is a clause in the terms that if the price hits $5, the notes are subject to being called in. Here is the official lawyer-speak from their information site: "If, at any time, the indicative value for any series of the Securities on any Trading Day (1) equals $5.00 or less or (2) decreases 60% in value from the closing indicative value of that series of the Securities on the previous Monthly Valuation Date (each such day, an “Acceleration Date”), all issued and outstanding Securities of that series will be automatically accelerated and mandatorily redeemed by UBS (even if the indicative value of that series would later exceed $5.00 or increase from the -60% level on such Acceleration Date or any subsequent Trading Day during the applicable Measurement Period) for a cash payment equal to the Acceleration Amount." These notes debuted at $25 and are now trading at $11.16. There was a news item in the Wall Street Journal today that a loophole was closed that was allowing mREITs to borrow money at artificially low levels. That means two things are about to happen: 1) The spreads on mREITs are going to get even tighter 2) Interest rates on mortgage backed bonds will go up as a consequence of increased risk requirements from those mREITs. Prices of the mREITs, which, amazingly though already depressed, are going to get even more so. The bankruptcies I warned about are going to start happening. If you have any mREITs in your portfolio that aren't earning positive net income, and don't have enough cash to cover at least 5 years of interest payments on their borrowings, ditch those right now too, they're toast. Off the top of my head, that takes Armour residential (ARR) off the table. This is not a fire sale. This is your retirement burning to the ground.