Dow Falls Below 7,000

The Dow has crashed below yet another floor of support.  It’s at 6,884 as I’m writing this.  It has lost more than half its value since its high of 14,000 in October of 2007.

It’s time to nationalize the banks.  Let’s learn from Japan, and let’s not repeat the same mistakes they made.  Have the government take over the banks now.  We need to act swiftly.  With the government in charge, investors will have greater faith in the system.  The government will have more authority to curb the absolutely ridiculous levels of executive pay, and Americans can know that there will be oversight.

As Nouriel Roubini says in this video, it’s not a choice of not nationalizing banks; it’s a choice of either partial or full nationalization.  It’s already happening.  I agree with Roubini–do a full nationalization right now, and use the proceeds/profits to get rid of the national deficit.  This will help build the world’s trust in the system, and it will provide a solution to the staggering (but necessary) debt that will come from the bailout.

I really didn’t think it would fall this low.  We’re in for a very very tough year ahead.

Related posts:

1. The Tribune Company Falls
2. Learning from Japan's Bank Crisis