Where are the market heading?

In order to see where the markets are heading, WSJ article compares to other similar situations.  Here are the conclusions:

 

There will be a lot more write downs.  We have seen E-Trade sell Prime securities for 27 cents on the dollar.  MS has $5.7 billion more writedowns.  So there is a lot more writedowns to come.  According to the article, it takes about 2 years for the price discovery.  So if you thought the crunch is over, it's far from over.

 

Cheap does not equal value!  We've heard this many times.  Just because Citi or Countrywide stock is depressed, it does not mean it's cheap. 

 

Watch Lawmakers and Enforcers.  They are the last ones to arrive.  So I guess this means when Angelo Mozillo is in jail, we will know the bottom:). 

 

http://online.wsj.com/article/SB119663796725711104.html?mod=hpp_us_whats_news