"Those of us who have looked to the self-interest of lending institutions to protect shareholder's equity – myself especially – are in a state of shocked disbelief."
Probably I don't know enough to understand what he's shocked about. But even when people are acting in their self-interest, they make mistakes. Especially when "everyone else" is making the same mistake. Bubbles and panics are examples of that.
Bubbles are trouble
and panics are double.