Yesterday's banking issues ended up being about more than just Eastern Europe and concerns about bank ties to emerging market countries. Mortgage insurers have been seeing rating downgrades as well.

Mortgage insurers are those that underwrite mortgages — especially those with less than 20% down, and many of them are starting to see substantial losses. Yesterday, it was MGIC and units of Radian that saw their Moody's rating cut.

The bad news in the financial sector continues to pile up. No wonder economic stimulus measures can't seem to inspire confidence.