Looks like the economy is going nowhere now. Embattled bank, American Insurance Group (AIG) yesterday posted a $62 billion quarterly loss, just after receiving a $30 billion bailout from the U.S Treasury ontop of its $150 billion it has already received.

This pushed the Dow Jones to fall below its 12-year low of 7000 points and KBW financial sector index to fall by 5.4%. The bleak news couldn’t come at a worst time as even legendary Omaha investor, Warren Buffet’s highly conservative Berkshire Hathaway posted a 98% decrease in fourth-quarter net income to $117 million and a 9.6% drop in Book value per share.

The continuous stream of bad news begs the question, “So how far will the rabbit hole go?”