Here's what I'm doing: Nothing.

Here's why:

1. We've been through much worse before, in the 1970's, and while things were no fun, it's not a Mad Max situation we face today.

2. I don't have a television (and haven't had one for 10 years) so when I get my news and it says "The World Is Ending" I have the ability to go to the sources to see what they really said, to make a decision on how to act (or not act) based on facts and reason, not the hysterical ravings of some TV pundit.

3. We're staring down the barrel of a recession - that's not a depression, it's a recession. A Recession is a "slowing of growth" - that's all, a slowing of growth.

4. I have no debt, I live in a house I can afford, and I have more than one marketable skill. If I ever lose this job, I'm going to have to work long hours as an EMT, or I'll have to work as a 911 dispatcher, or as an ER attendant, but I have those options because I've built up a set of spare skills over the years.. This might not be your situation, or it might be.

5. I've got family and we're close. One of the major things that happens in an economic disaster (per folks I know who lived in Russia in the early 1990's) is that families start sharing houses to save on money. While I'd rather not have my entire extended family move in with us, that's an option if things get totally wacky (and I don't think they will).

6. I live in the United States of America, and our people are generous and will do what it takes to help others.

Now, to the point of making a run on your bank. That's just plain not good. If you look at all the bank failures in the last month, you will not find one person - not a single person - who lost so much as a penny in the Federal takeovers. NONE. If you are concerned that the FDIC will run out of money - it won't be allowed to run out. That's a simple fact.

If you are concerned about your 401(k) - if you're close to retirement, you're not going to have much fun, because it's going to be a while before that balance comes back, so you might want to keep working a while more.

If you're like me, in your 40's, every dollar you put in to your 401(k) now (that is assigned to securities like stocks) is buying MORE than it was buying 2 years ago, so at the next recovery, you're gong to have a much better position then you did going into this mess.

Buying "more preps" is taking your money out of circulation and putting it into a depreciating, non-performing asset.

I bought a few extra cans of soup this weekend... But that's because it was on sale, not because I'm really worried about the economy.

At work the other day one of my employees talked about pulling her money out of her 401k and putting it into a money market account. I couldn't believe my ears.

I tried to patiently teach her about "real" losses versus "virtual" losses. I think she got that. But dollar cost averaging went completely over her head. Blame the teacher!

Since I (and my employees) get an immediate return of 100% on my 401k, why should we freak about a 35% "loss"?

Big ups to Sam and others who rightly confirm that good preps prevent panic now.

paying debts down, reducing monthly expenses ( no cable, cheaper phones),
no luxuries for a while...

Been saving up for this, and am buying stocks that I've been researching for the last several years. This is a great time to buy!

I'm spending slightly more and keeping more cash on hand.

Melting.

You have plenty of company.

I couldn't agree more. Happy hunting to you!