The Dow closed below 8,000 today and Nymex Crude Oil Futures below $53. And the outlook for the semiconductor industry is not so hot either.

"In discussions with semiconductor suppliers, equipment OEMs, and contract manufacturers, a story of fear and great uncertainty has emerged," iSuppli's Ford said. "As dramatic declines in consumer and industrial confidence began developing in late summer, order cancellations began to grow and in many cases, slowing orders degenerated into a complete stop in orders as players across the supply chain moved to extremely cautious positions in the face of increasingly negative economic news."

The psychology of many industry players now has shifted to a "survival mentality," iSuppli said, with cost-control and cash-conservation considerations driving decisions.

According to iSuppli, "it is now clear that the semiconductor industry is already in decline and the remaining questions are how deep and how long this decline will extend in 2009 and possibly 2010."

The one bright spot for consumers and manufacturing is the decline in the price of oil. For oil producers? Well they are going to be hurting.

I have a friend who cashed out of the market when the Dow was 14,000. He told his broker SELL. His broker said, "Are you nuts?" Evidently not.

Cross Posted at Power and Control