Average Jane asked if she would be able to access her money if her bank failed. The answer is a definite "Maybe."

The Feds took over IndyMac on Friday, July 11, 2008. Depositors were able to use their existing checks, ATM and debit cards, but lost EFT and wire access until the bank re-opened under Federal conservatorship on Monday, July 14, 2008.

Bear in mind, though, that bank failures frequently are preceded by bank runs. Under our system of fractional reserve banking, banks do not hold enough cash to satisfy all of their depositors at once. If you aren't first in line when the bank run starts, or if the Feds declare a bank "holiday" as FDR did, you may not be able to withdraw your money at all.

Average Jane asked for advice for the "average person." The bad news is that the average person today is mired in debt, living from paycheck to paycheck, and has too much month left at the end of the money. The good news is, the problem is not insurmountable.

Wet blanket time: the coronation of our new Emperor, Barack I, will not solve this problem and likely will make things worse. There, I said it. We are eight years into a secular (5 - 20 years or more) bear market that began in 2000 (the last year of the reign of Billary I, for those with short memories who believe the GOP is the disease and the Dems the cure). So far, our rulers are operating right out of Herbert Hoover's playbook, and we know how well that worked out. So you have to look first to your own financial and physical survival.

First, start building a cash reserve for emergencies. Start putting aside at least 10% of your gross salary every payday. Pay yourself first and don't worry about your credit rating. Your "good" credit rating is what got you into this mess, remember? Debt is your downfall and saving is your salvation. Once you have a reserve fund sufficient to cover six months of life's necessities, you can move debt service higher up the priorities list. Other Hubbers have written excellent pages on dealing with debt collectors. Read those and pick the approach that works for you, but remember: you're not picking a good solution, only the best of a set of bad alternatives. Your creditors can't get what you don't have, and they won't get anything if you die of starvation and exposure.

Don't spare yourself, either. Get rid of all those luxury items you bought on credit now, while there is still a market for them.The 50" plasma TV won't do you much good if you find yourself out of a permanent home or forced into a smaller one. We'll probably see some short-term, counter-cyclical trends, but the long-term outlook is bearish for at least the next decade. Plan for the long-term, and be pleasantly surprised if I'm wrong.

Don't believe the lies about FDIC insurance and "the full faith and credit of the U.S. Government." Your money always is at risk -- physical, economic, political -- regardless of investment vehicle. Your own vigilance, not the soothing words of the bureaucrats and their celebrity shills, is your best defense.

That said, banks and short-term Treasury securities are currently your safest and most liquid vehicles. You always should have a few days' worth of emergency cash on hand at home, small bills and coins, in case of natural disaster, terrorist attack, or bank failure.

Hard assets, such as gold and silver, are always good. You may invest in mining shares and/or hard asset exchange traded funds (ETF's) but you also should physically hold some. GoldMoney offers offshore vault storage in the Channel Islands, while e-Gold offers an online payment system in gold. Federal interference has screwed up both of these for the small investor. GoldMoney's excellent electronic funds transfer (EFT)-based Gold Accumulation Plan (GAP, also available for silver) has been terminated; now transfers are conducted only by wire, considerably raising the cost of small transactions. e-Gold is closed to new accounts while they reorganize to accommodate the Ferals, er, Federals.

In the equities market, I'd invest in foreign markets that actually show growth and capital accumulation. I also recommend you keep current passports handy, in case you need to offshore your greatest assets -- yourself and your family -- for a while.