Another dramatic day on Wall Street.

Stocks resumed their downward spiral Wednesday as even the Federal Reserve's $85 billion rescue of American International Group left investors unconvinced that the broader U.S. financial system is no longer in peril.The Dow Jones Industrial Average ended near a three-year low, down 449.36 points, or 4.1%, at 10609.36, off 7.1% so far this week. All 30 of the Dow's components fell, including a 45.3% drop in AIG shares. Among the blue-chip measure's other financial names, big losers included J.P. Morgan Chase, off 12.2%, and Citigroup, down 10.9%.

Goldman Sachs and Morgan Stanley are now being focused on by the bears in the market. The thinking seem to be that the traditional investment banking business model no longer works and that deposit base is necessary for financiall institutions. We would expect Morgan Stanley to be sold or to merge with a bank and it appears Goldman has to do something as well.

The big problem remains the freeze in the credit markets. Financial institutions simply cannot survive without liquidity and no one is comfortable providing it.  These events are shocking and isn't over yet.

What is the impact on Maui real estate? At the moment who knows…but it isn't good.