Wow, what a crazy day for the market. It's been a really wild and volatile ride recently. The fear is really becoming apparent... check out the Volatility Index (^VIX). The last time we saw readings as high as we saw today was back in February/March of 2003. I think it's safe to say that, it really is fear in the markets we're seeing.
Here's a 1-year chart of the VIX.
I might be crazy, but I think that there will be some really good buying opportunities in the beaten-down (for good reason) financials. I would like to get some Goldman Sachs (GS) yielding 1% at $140. Bank of America (BAC) looks worthwhile, and it doesn't hurt that Buffet has been adding to his position there. You could probably even speculate on Countrywide Financial (CFC) at some point. If we see this financial sector meltdown continue, I will probably begin building a position in this sector via the S&P Financial Select Spider ETF (XLF).
If I had more funds today, I think I'd start buying some of the more conservative blue chip names that have been taken down with the rest of the market. I guess that I'm hoping that the overall market stays low and that the Financials take a bigger hit as I raise cash to make a few moves.