In 2008 the CMBS (commercial mortgage backed securities) market crashed completely. Why? The buyers of the most senior bond tranches, those farthest from risk of default, started toe actually read the prospectuses issued in advance of the sales of new CMBS issues. Those investors were shocked at what they saw, and started to forcefully push back on the loan underwriting and the underwriting of bond issues. The result was the the CMBS market ceased to issue new paper for more than a year, and it took about five years for the market to correct itself.

The NYS pension funds which bought TSLA shares need to (1) bite the bullet and sell ALL of their TSLA holdings, and book the losses; (2) dump any private-issue bonds they bought at the time of the buyout of Twitter (the losses on that paper have already been booked); and (3) talk loud and long about how by any reasonable measure shares of TSLA are over-priced by approx. 8-10 times, when those shares are compared to shares of any other auto maker. The institutional investors have to get out, explain clearly why they are getting out, and start the process of the decline of the price of TSLA share. Doing so will hurt Leon Skum more than any other action which might be taken, short of shooting him on Fifth Avenue...