Yes, Russell is saying get into cash/treasuries. Those who sell early get the best prices for their assets. They sit on the sidelines able (like HedgeJob says) to later buy up the assets a lot cheaper.
Money held in banks is only a small fraction of total wealth. The contraction in credit creation (which is what is now happening) is deflationary - Another reason why asset prices fall. In fact past leverage is being unwound in the USA, Europe and to some extent in Australia.
The early bird catches the worm while the herd gets cut down (you know what I mean).
I suggest you read Mish Shedlock's website for a blow by blow account of what is happening in the USA http://globaleconomicanalysis.blogspot.com/
