So the final results from the Lehman Brothers CDS auction are in, and they're even uglier than expected. Finally price is 8.625 cents on the dollar.

Be prepared for the perma-bulls to start saying that all the money made by those getting paid out will be poured back into equity and the credit markets and save us all. And there are whiskey rivers on the Big Rock Candy Mountain.

This should result in another round of huge write-downs, and add paranoia to the market as everyone tries to guess who had the worst exposure to this disaster.