We’re all waiting: When will it end?

 The government signaled Thursday it may be about to nationalize in part a number of banks after yet another dramatic stock market fall.

U.S. stocks closed at their lowest level in more than five years Thursday, as investors signaled they do not believe the government’s $700 billion bailout and half-point interest rate cut will turn the economy around.

The Dow Jones fell below 8,600 after an avalanche of last-minute selling, driven by continuing panic in global financial markets and poor results from  big-hitters like General Electric.

White House spokeswoman Dana Perino confirmed Thursday that Treasury Secretary Hank Paulson was considering buying shares in private banks, per a provision written into the bailout bill.

It would mean the government being both investor and regulator of certain banks.

“So long as financial conditions warrant, we will continue to look for ways to reduce funding pressures in key markets,” said Fed Chairman Ben Bernanke.

Many economists say little has been done to address the heart of the spreading financial contagion: falling housing prices and rising foreclosures.

Former White House economist Glenn Hubbard proposes that the government refinance every mortgage held by Fannie Mae and Freddie Mac into 30-year loans fixed at 5.25 percent.