With no end to banking bailouts in sight, the Dow Jones Industrial Average plunged Monday to its lowest level since 1997. The Dow fell 299.64, or 4.24%, to 6,763.29, while the S&P 500 dropped 34.27, or 4.66%, to 700.82. The Nasdaq lost 54.99, or 3.99% to 1,322.85.pp Dylan Ratigan, the moderator of CNBC's "Fast Money" TV show, said the narrative returned to the beginning of the financial crisis with yet another bailout of American International Group ( AIG). He said the bailout was reprehensible, given the fact the insurer indicated today that it insured $500 billion worth of credit without keeping anything in collateral. Joe Terranova said the deepening market pessimism could lead to a bear market rally. Zachary Karabell found some positive signs in the uptick in consumer spending and income numbers in January and a bottoming in the purchasing managers' index of the Institute for Supply Management in February. Perhaps, he said, the "real" world will lead the recovery this time instead of the markets. Jeff Macke said he would "shorten his swing" and "have a lot of cash" in this frightful market. Tim Seymour said his firm is operating on a small book now, with "a couple of longs we like" and some high beta names on the short side. Ratigan asked the panel how much further they thought S&P earnings will slide. Macke said it could easily drop 20% to 30%. Ratigan then asked the panel what strategy they would pursue: do nothing, pick off cheap stocks or go short. Macke said there are no cheap stocks because of the erosion factor and no leadership from Washington. Seymour said he would stay mostly in cash, while Terranova held out for a possible bear market rally.