Black October has already lived up to its name in the first seven trading days of this month.

The 22 percent loss on the Dow was matched by the Standard & Poor's 500, as well as the NASDAQ.

This was the worst seven down days since Oct. 19-26, 1987, when a similar downward spiral was initiated by the 22 percent crash of Oct. 19, which set a one-day all-time percentage record.

Ironically, Thursday marked the first anniversary of both the Dow Jones Industrial Average and the S&P 500's reaching all-time highs. In this one-year period since, the major stock market averages dropped 42 percent.

It's now time for the Bush administration to take the gloves off and take the following action, some of which I recommended in my earlier blogs:

1. The 50 basis point fed funds drop, which I recommended immediately, with a follow-up of a similar magnitude on Oct. 30, seems already on the way to accomplishment.

2. The insidious mark-to- market, which continues to shrink bank reserves, must be eliminated, even if done under the guidance of U.S.-approved certified public accountants.

3. The Treasury must immediately inject the requisite capital into reputable FDIC-approved banks to guarantee the reserve levels necessary to resume lending. This could be compensated by the U.S. Treasury taking a stock position in these banks.

4. Since the current selling avalanche is being exacerbated by the de-leveraging of hundreds of hedge funds, the government must take precipitous action to guarantee loans between banks and in buying futures, as well as stocks directly.

This is no time for ideological debates, when the foreseeable future of our core economy is at stake. Otherwise the current downdraft could become a bottomless pit. The only spokesman with the credibility to rekindle badly needed confidence would be the world's No. 1 investor, Warren Buffett.

Morris R. Beschloss writes a regular blog on mydesert.com. He can be heard on KPSI Radio 920 AM from 8 to 9 a.m. every Friday and on KGAM Radio 1450 from 9 to 10 a.m. Saturday, seen on KESQ Channel 3, and on Time Warner Cable TV Channel 111.