Liquidity crisis explained

Came across this easily understandable explanation for the current liquidity crisis

http://news.bbc.co.uk/2/hi/uk_news/magazine/7670313.stm

and if one has enough patience this:

http://www.hindu.com/mag/2008/10/05/stories/2008100550010100.htm

But all this is hindsight which always happens to be 20/20

For now the Sensex is flirting with 4 digit levels and will be interesting to see where it bottoms out. My guess 8k