Welcome to carnage street, as I write this, US markets had corrected by another 7% in yesterday’s trading session. Exactly a year ago Dow and Nasdaq had recorded there all time high, and at yesterday’s level the induces where corrected by 40% from its all time high. We have lost a lot in terms of market cap, jobs, financial institutions and above all “Trust”, the first word of banking. As the current crunch in debt market proves this point.

What to make in the current situation? Are we done with the downside or there is still bad news waiting in store for us? A million dollar question. Analyze this.. Iceland, having highest per capita income at one point is on the verge of bankruptcy. Analyst feel now the center of attraction shift to Europe and Asian banking business. As now there balance sheet will be putted to the highest level of scrutiny by the various credit rating institutions.

India having a small exposure in the current credit market on the global level was not helpful in keeping us away from the global meltdown. The Indian banking system is all set to go through a acid test in another three month span. Banks like ICICI and HDFC will be in the center of attraction. As next six month will unfold our ability to stand the credit risk and repayment of various retail and corporate loans. Sectors like realty and infrastructure are already causing a major problem for the banks as most of the payments are either delayed or putten on hold.

My understanding is to see BSE at 9000, and a major correction in the Indian real estate market in the months to come. Be prepared for the discount “Dhamaka” and remember the thumb rule ” Not to loose your money and not to loose your job”