As Dow drops below 7,000, are there safe havens?

The Dow Jones industrial average fell below 7,000 for the first time in more than 11 years, undermining what little confidence investors have left.

Blame Warren Buffett's comment that the economy will be in a "shambles" for the rest of the year. American International Group Inc.'s (AIG) posting the biggest corporate loss in history doesn't help either, nor does the fact that the insurance giant needs yet another bailout.

And the drumbeat of bad news from financial companies continues. HSBC Holdings, Europe's largest bank, is doing a mammoth rights issue and exiting the U.S. consumer market. PNC Financial Services Group Inc. (PNC) cut its dividend by 85 percent. Asian and European markets tanked as well.

Can things get worse? Of course they can.