What's a Person to do?

We took our retirement and the 5 grandbabies college funds out of stocks and put it in bonds anticipating a further meltdown of the stock market, but with Fannie and Freddie devolving to junk this may cause a meltdown in the bond market. Can't win for losing. Remember back in March when the Bushes had Fannie and Freddie take out almost their entire capital reserve to prop up the housing market? That really helped a lot. We (the taxpayers) could be on the hook for a trillion or more! So both stocks and bonds may melt down and more banks are failing. Santa Barbara has designated a special parking lot for people who sleep in their cars. Santa Barbara? California has a 7.3 unemployment rate and that is just the ones who have not given up. Hunker down.