EUR/JPY continues to sell off as risk aversion reaches extreme levels. One of the wires reports Morgan Stanley’s creit default swaps trade at richer levels than Bear Stearns did before they collapsed. AIG trades on a $1 handle. The baby is officially being thrown out with the bath water. Any doubt a Fed cut still? Dealers report light flows as customers pull in their horns. A few stray hedge funds are playing, but not many.