I'm going to go out on a limb here and say what I feel to be true - though it sounds crazy.
My prediction is that every common stock in the stock market will be trading at $1 or less if the Federal Reserve or Treasury doesn't step in and start buying stock in the open market.
Because, really, who else in his right mind would buy stocks right now? Who cares how undervalued stocks are if they will still go down 40% or more within three weeks of you buying them? Even Warren Buffett has been proven wrong.
Somebody with REALLY deep pockets needs to start buying and keep buying to stabilize things. Otherwise, ordinary people won't buy stocks again - for at least a generation.
It's not quite that bad. At some point probably between where we are at now (DOW 8000), and DOW 6000, people just will now let it go any lower... The number will be so low that there will be enough buyers who see it as a great opportunity...
I agree, it can only go down so far. The GM, F, and Chrysler news was the catalyst today, or the excuse. I think Goombah wants this market down to at least 7,000, with a possibility of it hitting 6,000, or even 5800. If it stops near 7,000, that would be a retest of the 2002 lows. That would also make it tied for the worst Bear Market since 1937-38, and 1906-1907.