Fair trade? The Knicks are totally lowballing the Nuggets. Lets analyze the proposed trade:
Felton, Gallinari, Chandler, Curry, and a #1
for
Melo, Billups, Williams, and Carter/Balkman
Curry, Williams, and Carter/Balkman are all throwaways - salary dumps that won't be with either team come next year.
Regardless of whether the Knicks trade for Melo or sign him during the offseason, with Melo on the team Chandler wouldn't be back next year for salary cap purposes.
Felton for Billups is essentially a wash - PG for PG (granted Billups is older and more expensive).
That means the core of this trade is Gallinari and a #1 for Melo. Talk about a steal. Even including Mazgov (making it Gallinari, Mazgov and a #1 for Melo) is still pretty much raping the Nuggets. Either way, the Knicks get the better end of the deal.