Market Isn't Very Stable.....time to get to safety perhaps?

Ok, so the equity market is bouncing like a yo-yo....everyone waiting for this magic bullet called the federal bailout plan.

I am not sure if this is a good or bad thing....I mean in the long run. I just don't know...but it seems to me that owning a bunch of defaulted homes can't be a good thing.

I'm also thinking that all that money creation must be causing inflation....but I don't know.

I don't like the general idea of the government bailing out companies and home owners who many of which were involved with loans that were just no viable.....where was their common sense?

On the other hand, I don't like the idea of an economy falling out of control because of panic....and over-reaction. But our country is in a world of hurt, and under a mountain of debt. In general, the USA is "too big to fail"! (where have I heard that before)

My plan.....at the moment, my portfolio is roughly apportioned like this:
77% - BONDS (about 6 funds)
11% - Foreign Currency (Cash in Euro, Yuan, Aust $, Canada $, Swiss Franc)
1% - Gold
5% - Equities (two funds at my work 401K)
5% - CD Fund
1% - US$ Cash

I am thinking of dollar cost averaging out of the bond funds into cash....I'm just afraid that some of these "safe" funds have exposure to some more of the "safe" companies that seem to be falling all around us ever day. (yet to fall that is)

I think I might get out about 10% a week.....and at some point, start dollar cost averaging into TIPS or iBONDS......to the point where I have perhaps 40% of my total money in inflation protected government securities.

I might actually "play" with perhaps some of my money and put it in and out of a couple of bear funds.....but that is kind of like gambling.....and that isn't my style.