In the wake of $800 billion of taxpayer money spent so far to try to fix what ails the financial system, people are concerned and facing different challenges depending on who they are. Different groups of people might consider responding differently.

Here are some thoughts on possible responses:

• Families need to find safe banks in which to deposit their money. With stocks down at least 13% so far this year, many people are thinking about how they can cut their losses. While some, like Warren Buffett, are using this decline as an investment opportunity, most cannot do that. A typical family needs to make sure that it has sufficient money in a safe place. To that end, families should keep funds in a bank account of less than $100,000 that is insured by the FDIC. That family should also make sure that its bank is profitable, has low loan losses, and no brokered deposits. If 1,000 banks fail in the next year, it would be less stressful to have money in one of the 7,400 banks that are not taken over by the FDIC.
• Banks need to reduce assets and/or raise capital, find a merger partner, or shut down. If you manage a bank that is solidly profitable with adequate capital and good credit quality, you are in relatively safe territory. If your bank is losing money, has too many risky assets, and inadequate capital, you may be able to sell assets and raise capital. But the markets for both are quite tight. If you can't do that, you should seek a merger partner or let the FDIC take you over.