"The psychological foundation of liquidity is confidence. We cannot stress this point strongly enough. When investors are optimistic, confidence remains high and liquidity expands. When this optimism goes away, the spigot will run dry. The psychological foundation for the asset boom, a rise in social mood, has slipped away. As confidence continues to wane, the resulting destruction mounts. It may seem strange that even as the fundamental changes dig in, people cannot see what is before their very eyes. Of course, this is how the progression toward a pessimistic extreme has to happen. The untold story of 2008 is that it is just the opening salvo."