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Re: US will NO LONGER Cover Money Market funds!
This was the case for most of US history pre-Lehman. I don't think it's particularly monumental news. -
Re: US will NO LONGER Cover Money Market funds!
Investors stepped up withdrawals from money-market funds this week ahead of today's expiry of a federal guarantee to safeguard their money. Investors withdrew $55B on Tuesday and Wednesday, far more than usual, according to fund-watcher Crane Data.Comment
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Re: US will NO LONGER Cover Money Market funds!
Originally posted by jpatter666 View Postmore fuel for the stock market?According to Crane and iMoneyNet, money funds held just under $3.5 trillion as of Sept. 15, down from a peak of $3.9 trillion in mid-January. Crane and Bugbee said they expect steady outflows from the funds as investors continue to move to stocks and bonds, to as little at $3.1 trillion next year, Crane said.Comment
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Re: US will NO LONGER Cover Money Market funds!
Exactly what I was thinking.Originally posted by D-Mack View PostComment
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Re: US will NO LONGER Cover Money Market funds!
None whatsoever. As soon as one of these funds breaks the buck, the FED will come in a make everyone whole.Originally posted by Mega View Post
After all, it's just another digit on a screen and another button to push.Comment
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Re: US will NO LONGER Cover Money Market funds!
Yes, dammed if you do, dammed if you don't.:mad:Comment
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Re: US will NO LONGER Cover Money Market funds!
I disagree; this is very important news. The laxidazical (sp?) way things have been run in the U.S. under de-regulation--- thanks to ALAN GREENSPAN and former U.S. Treasurer, Robert Rubin--- are making issues such as the safety of your money in money markets or brokerage firms an important issue, indeed. INDEED!!!!!!!!!!!!!!!!!Originally posted by thedanimal View Post
And add to this, the shinanigans (sp?) in after-markets, called "THE DARK MARKETS" on Wall Street, is making a mockery of stock market trading during the open market: 9:30AM to 4:00PM EDT.
Cowboy capitalism used to be the term in America to describe this disgrace, and this is a disgrace.
Who stands good for what? How good is their word? How much coverage do they provide? What debts might they have in the dark stock market or in the derviatives market? What is the downside risk to the saver for having money vested in their money market fund? Who else is in their money market? What makes their money market, "a market" at all for money? ..... The questions that arise are endless.
And that all leads one back to owning physical gold: at least you have the gold. That is the primary reason to own gold.
People laughed at me for withdrawing money from my money market account earlier this year. I used that money to put a new roof onto my house and to add a garage next to my house.... I was being paid 1% as compensation for the endless hidden risks of holding cash in a brokerage money market account, so I took my money OUT and converted it to REAL things of real value, things that I could use.Last edited by Starving Steve; September 18, 2009, 02:23 PM.Comment
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Re: US will NO LONGER Cover Money Market funds!
The world is a 24 hour place. Shutting down the markets at 1:30pm or the weekend is damn silly.Comment
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Re: US will NO LONGER Cover Money Market funds!
They ring a bell for ten seconds just before ALL trading is to cease at 4PM Eastern Time on the NYSE. At exactly 4PM, a gavel is struck onto a block. This is deemed, "gavel- down time". But that is all just a charade (sp?) for the public. The trading continues on all night and all weekend in the dark market, the derivatives market, and, ofcourse, in foreign markets.Originally posted by blazespinnaker View Post
The point is that all markets need to be jointly regulated by some world body, but no such regulatory body now exists. Or world central banks need to operate in co-ordination with one-another to regulate financial markets. The economics departments of universities need to be thinking about how to solve this real world problem before another 2008/9 market melt-down arises. (Otherwise, capitalism really is dead.)
The only practical way I can think of to easily solve this problem right now is for the SEC in America to outlaw all dark market trades, all derivatives market trades, and all trading of NYSE stocks on foreign markets. In other words, if such trading does continue, the trading firms will be held financially liable for any damages and losses that arise from this trading.
In other words, we need an SEC with balls in America.Last edited by Starving Steve; September 18, 2009, 02:33 PM.Comment
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Re: US will NO LONGER Cover Money Market funds!
your joking, right? economics, universities, ...solving real world problems - I have a new appreciation for your sense of humor.Originally posted by Starving Steve View PostComment
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Re: US will NO LONGER Cover Money Market funds!
Yes, I hadn't taken my anti-seizure medication at the time I wrote that paragraph.
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Re: US will NO LONGER Cover Money Market funds!
Interesting. Maybe the massive MM withdrawals made it's way to more risky investments and can explain the recent drop in M3 combined with gold/stocks surge and dollar drop.
BTW, I posted this chart on Bart's forum:
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Re: US will NO LONGER Cover Money Market funds!
I guess if the FDIC can't get enough money together to actually backstop all the banks that need to fail, one can just wave their magic wand and say *poof* we no longer protect your MM accounts. *BUT* if you take your paper and place it in these lovely under-capitalized facilities that need more deposits pronto, we'll happily cover you over there up to $250K. Come on down! Why not kill two birds with one stone.
Oh yeah, ironically - oligarch puppet GE's/CNBC's jim cramer started advocating this same move this week...
genius.
-PangeaComment
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