Question for Oexchaos

Ok, as mentioned so long ago, I'm out here in Vegas for several months betting the NFL and looking at property, though I have not see Iron Cross anywhere. Months ago I moved a substantial sum of my assets into a money market, which held US Treasury paper. Mark for so long stated we should not take any risk with cash. Now that Paulson stated he will guarantee the $1 price of every money market fund, should I not move into the most risky money markets where the manager undoubtedly will reach for yield, assuming the government backstop. It seems risk has disappeared in this instrument. Two days ago, I did buy the QQQQ's and the DIA's and sold the DIA's on the open and QQQQ's on the close today. Maybe a mistake, but I am one to always scalp a good profit. What a great trading year and what a great month. We could not have asked for more volatility. By the way, the biggest problem with Vegas is the markets open at 6:30 am out here and you really have to be up at 3:00 am to catch all the news. I am still a believer in MGM and I continue to buy it when it gets into the low 20's and then write options when it spikes up into the high 30's. What an income stream.

" It seems risk has disappeared in this instrument. " Not so fast. It is a proposal at this time from White House. Congress (Senate & House both) will have to vote and send the bill for president to sign. Only then you are on firm ground. It may take couple of weeks to make it a law.

The U.S. Treasury Department said it would use $50 billion to back money market mutual funds whose asset values fall below $1 a share. Separately, the U.S. Federal Reserve said it would lend even more money directly to financial institutions so they could purchase certain assets from money market funds.
"For the next year, the U.S. Treasury will insure the holdings of any publicly offered eligible money market mutual fund -- both retail and institutional -- that pays a fee to participate in the program," the Treasury said in a statement.
President George W. Bush approved use of the Exchange Stabilization Fund to guarantee payments, Treasury said. The fund, which traces its roots to the Gold Reserve Act of 1934, allows the Treasury to conduct various transactions with the Treasury secretary's authorization.

"It is probably a testament to how bad things really are..."
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