Being in a somewhat similar situation, I am planning to place all my cash in FDIC insured accounts with highest returns possible in multiple institutions (i.e. not exceeding $100K at a place). After the last weeks BNP Paribas news, I am sceptical about earning reports etc., I suspect most institutions have exposure to real estate, especially residential kind. Also, HELOC, credit card debt will all be impacted by real estate defaults. I saw S & L crisis from up close and if there is one thing I learnt, it is how irrational asset valuations can be.