dow 6000

My prediction of six months ago just came through. But if you insist and stick to closing numbers only, I should say it is about to come through, a few hours from now. The Dow Jones is below 7,000 for the first time since late 1997. I believe it has a ways to go. I have said it many times, I am a dyed-in-the-wool optimist and 6,000 was too optimistic. 5,000 anyone?

Did you also notice that AIG has just reported the biggest quarterly corporate loss in American history? And that GM is among the walking dead? Or that California unemployment is in the double-digit range now? It is scary to see how quickly all these predictions are coming through. Given how early -yes, you read that right, early- we are in this crisis, that should just scare the hell out of us.

It seems unlikely that we will come out of this crisis in less than 10 years. That is my optimistic scenario. The damage will be widespread and it will be very serious. Better hold on to your seats.

Best is to buy gold. Never mind that the price will fluctuate. A few years from now it won't seem all that important anymore.