By Alan Fein

(AXcess News) New York - The Dow broke through the 7000 barrier Monday following AIG's dismal loss and $30 billion government funding as  "no confidence" votes were cast by investors.  The Dow is now near a 12-year low, closing down nearly 300 points at 6,763 for a loss of 4.2%.

The S&P 500 index lost more than 34 points, or 4.66%, to finish the day at 700.82, dragged down by ten issues.  ConocoPhillips (NYSE: COP) which has suffered in value as oil prices remain low.  Crude oil futures on Monday closed down $4.68, losing 10.46% to close at $40.08.  Time Warner (NYSE: TWX), which reported a $16 billion loss in the fourth-quarter in February, closed down 27 cents, or 3.54%, at $7.36 as the media sector overall reports sagging ad sales.  Bank of America Corp. (NYSE: BAC) closed down 32 cents, or 8.1%, at $3.63.  The banking giant was dragged lower on AIG's staggering loss and second-round government bailout funding.  The mining sector wasn't left out of the S&P's drop in value with copper-producer Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) dropping nearly 13%, or $3.93, to close at $26.49.  Freeport-McMoran recently reported a $13.9 billion loss in the fourth-quarter after writing down assets.  Copper futures on Monday finished the day down 1.5 cents at $1.52 per pound.  Gold futures lost $15.40 per ounce to close at $927.10, giving up nearly 1% of the precious metals' value.

The S&P 500 index is now at its lowest level since 1996.

The Nasdaq National Market Index lost nearly 55 points, or 4%, to close at 1,322.

The Dow Jones Industrial Average has now crashed through what many market pundits consider to be a psychological barrier and unless some cornerstone economic news comes in, like a bottom in the housing market, the Dow could continue dropping as low as 5000.

While a lack of confidence prevails, much of Monday's sell-off came because of AIG, which is being provided a second-round of bailout funding by the Treasury Department to the tune of $30 billion.  The weakness AIG signaled carried across the entire Big Board financial sector.  CitiGroup (NYSE: C), which is seeing the government move to convert preferred stock into common of as much as 34% of the banking giant saw its shares tumble, losing 20%, to close at $1.20 for a trading loss of 30 cents.  CitiGroup, which just 52-weeks ago traded at $27.35 is one of the nation's largest banks and also suffering from acute losses.  Wells Fargo & Co. (NYSE: WFC) lost $1.26, or 10.4%, to close at $10.84.   Wells Fargo's stock has lost 7% of its market value in 52-weeks but is probably one of the soundest banks in the nation.

For investors, trying to find the bottom in stocks is frustrating.  S&P watchers say the 500 index tends to bottom out about 5 months ahead of a recovery.  But if the Big Board issues that comprise the S&P 500 index don't begin showing some gains soon, that theory will be parked on the White House lawn.

Some say the Obama administration is at fault for piling up taxpayer debt from the recent $781 billion stimulus plan the President signed into law in February.  Now, Obama is on a steeper spending spree in a federal budget that will top $4 trillion.  The stimulus plan part of that gave little in the way of incentives to small business owners and only some tax relief for consumers, leaving many investors feeling left out.