I think that this credit crunch crisis is getting more water cooler talk. Most folks still don’t seem to grasp what is going on.

Please review every prospectus in your 401K/403B and taxable accounts. You may be suprised to find many “safe” bond funds of these have heavy holdings of MBS – Mortgage backed securities.

As a measure of how risk averse I am now, I have even shifted money out of Money Market Funds in my multiple 401K accounts. Although safer than bond funds, some of these MM funds are loaded with an unknown amount of potentially risky asset-backed securities and other “paper” that could be pulled down by the mortgage mess. I shifted all of these assets into Govt treasuries.

I have scrubbed and rescrubbed my entire portfolio to ensure minimal exposure to MBS and associated fallout. Are you folks doing similar things?