With the slow economy and the failure of the IndyMac bank in California late last week, many Nebraskans are left wondering just how safe their money is.

Markets are sinking, the nation is in the middle of a prolonged housing and credit crisis and now a bank in California has failed. But Nebraska economic and banking officials note these national crises don't hit as close to home as some may think.

It's no secret: America's economy is stuck in neutral.

"While we haven't fallen into a full-blown recession, or a deep recession, it's been a very frustrating period of time because we've had slow to no growth for probably about eight months now. With the economy becoming weak, and having gone through this extended period of difficulty, people are starting to get kind of nervous and worried about it, said Eric Thompson, UNL's Bureau of Business Research.

Especially when jobs are being cut, foreclosure becomes a common everyday word. June's inflation rate grew at the fastest pace we've seen in 27 years, but Thompson said Nebraskans shouldn't be worried.

"I think we're in better shape than the national economy. I think we're growing at a slow, but steady rate in Nebraska because we're not as hard hit by the housing downturn, becuase we have a strong agricultural sector, because our manufacturing industry is somewhat tied to that agriculture sector. The state is doing pretty well," Thompson said.

George Beattie, president of the Nebraska Bankers Association, agrees. He said while the IndyMac Bank in California has recently failed, that's a nightmare Nebraskans shouldn't be concerned about.

"Nebraska banks are very sound. We have very strong capital levels in Nebraska banks. Nebraska banks are relatively profitable given the circumstances in the economy," Beattie said.

"99 percent of the banks in the United States are well capitalized, and that's the highest capital standard that a regulator issues to a bank. That would be true with Nebraska as well."

Thompson said he's optimistic by next spring the economy will bounce back.

"We'll start to see a rebound in growth, but we'll have to wait even longer as a nation," Thompson said.

Thompson said high inflation rates mainly due to prices for food and fuel, but as long as other prices hold steady. We shouldn't have long-term inflation.

Beattie said one of the best ways to ensure your financial safety is by getting to know your banker and always having a back-up emergency savings fund.