aiyer tak aci, last min all pulled up.

so KNM, what price you enter?

You are not looking at the bigger picture. Next week, there will be an auction on WAMU credit default swap, and those underwriters of the swaps will have to pay out this insurance that they sold. So how much does this CDS worth? 10 cents per dollar? The question remains on who will not be able to pay and who has to raise capital? That's what we mean by counterparty risk. We don't know if those underwriters are FINANCIAL capable to pay out the claims. So the market is still wary of what could happen next week especially when JP Morgan has announced that the bad loans are pilling up.
Also we had close to a month of credit market woes, this will translate to lack of confidence in business owners. With the lack of confidence, there will be more job cuts and less of business investments. The coming months, unemployment numbers will shoot up, retail sales will continue to drop at rapid pace and durable goods especially exports will continue to fall drastically.

Another point: How can you determine fair value when there are toxic ARMS in the bank balance sheet and recessionary data are coming in thick and fast?

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Added on October 16, 2008, 8:21 am

Haha, you should have called me earlier. 

Regardless, we might see 900 for FKLI today.