Tuesday, August 14, 2007

Money Market funds are safe?

I try not to post on what other bloggers post (who do a better job than me), however, every now and then something pops up that is surprising.

Remember, per Bernanke and Paulson this issue is contained to subprime. Nevermind, Alt-A, Prime, Hedge Funds, European Banks, Money market funds, ....

From the Big Picture:


via the always astute Doug Kass, we must point you to this simply unbelievable document . . . from Sentinel Management Group.

That's right, some Money Markets -- safe as cash, totally liquid -- are halting redemptions.

Note: there is a big difference between Money Market Funds, and "enhanced" Money Market Mutual Funds -- namely, whether or not they are FDIC guaranteed to $100k.

6 comments:

Ichabod said...

Hey Bakersfield Bubble! Give me your e-mail address, I have something funny for you!

Bakersfield Bubble said...

bakersfieldbubble@hotmail.com

WaitingToBuy said...

LA Times article

http://latimesblogs.latimes.com/laland/2007/08/socal-home-sale.html

Home sales at 54% below peak....

Ichabod said...

SENT!

Rob Dawg said...

There's "safe" and there is "SAFE." THere is no way short of global thermonuclear disruption of global commerece that the face value of the principal will be in any way reduced. It mayt turn out that you get your original money back out years later at the origina; face value. Some protection.

WaitingToBuy said...

Hey, that's better odds than risking your house burning down when you leave your money under the mattress! Bright side.