Financial meltdown: What to do now?

I like this article from NYT (Taking control of your financial risks) for advice on what people should be doing during the current financial market turmoil.

To summarize:

• if you are not close to retirement: you have to stay in the stock/bond markets; maintaining a high percentage of your retirement holdings in cash or near-cash (i.e., money-market fund accounts) is too risky …
• if you are close to retirement, you still need to keep your portfolio in stocks/bonds; if you are nervous about the future of capitalism or the markets near term performance, adjust your stock/bond – cash mix only slightly; don’t go whole hog into cash
• if you are in retirement, focus on controlling what you can: your spending habits. Cut down on those expenses in support of your kids or grandchildren; stop eating out; cut back on some of the luxuries of your retirement years (if you have any)