The Last Leg to Be Lopped-- Bank Bondholders

With shareholders and taxpayers taking the brunt of the financial debacle, as the primary scapegoat for the crisis, the last leg they say to be punished is the bank bondholders, who are feasting on their 8% returns.

It's the top headline now on bloomberg. If I'm not mistaken, a bond holder has time commitments, thus, to cash out would be to take a significant hair cut, correct? The spreads on the bond yields are significantly high, about 8%, and it seems equitable that they do receive a trim. As for the ramifications of that, I'm not sure if it would be all that devastating, because they are getting all the cake right now, it would be to take away part of that big cake; it seems many would remain bondholders, simply because of the nature of such investors. Though, I did underestimate the severity of the collapse post DOW 8500. If the hair cut happens, then I think I will be on my toes, watching the vix. Yet, even still, it seems inappropriate to think bank stocks, after being cut in half and more, are not worth half of what they use to be. Thus, while the financials are being dismembered and this seems to be the last leg to be lopped, the trunk and the brain is worth more than the arms and the legs.