15 replies to this topic

[HoseB]

Sounds like "high yield, below average credit quality" paper.... So let me get this straight.... for the last few years, the financial markets were "awash with liquidity" and the primary driver of the the equity bull. (No longer?) And NOW, there's still lots of liquidity, but not CHEAP liquidity... not "pay any price, yield-chase" kind of money.... and that's what Cramer is belly-aching about?

Edited by HoseB, 14 August 2007 - 11:46 AM.

[SemiBizz]

US CFTC says it can't halt Sentinel's redemptions

[MangeMan]

of course it's a big deal, the size of fund is irrelevant here

http://www.forbes.co...afx4018389.html

"Thomson IFR Markets says, 'this is a scary development. If this problem spreads to Vanguard, Fidelity, and other large money market funds, funds with trillions of dollars, we shudder to think that we might see an old fashioned 'run on the bank'.'"

[humble1]

i know i said that here and elsewhere days ago, but i am a nobody and a nobody who nobody listens to. i must say that is a bit out of line for them to put that in the public view - not very helpful AT ALL. if the public is going to panic, let them do it on their own !

Edited by humble1, 14 August 2007 - 01:04 PM.

[pdx5]

The only safe haven for your funds is US Govt Treasury MM funds. US Govt is the ONLY outfit out there with legal money printing machine However what happens if the mutual fund company gets in a severe bind due to its other funds? What if they go broke, even large ones such as Vanguard? I guess the only really safe place is direct purchase of US Treasuries.

[OEXCHAOS]

I'm no expert on this MM, but most MM paper is very short term.

Before the attorneys can file their law suits, the principle should be paid off.

One hopes.

Remember when I said get your money markets in government funds?

Mark

Mark,

Can you suggest something safe when the money is in a 401k. (i.e. type of gov't mm fund)

I would look at the fund offerings. Check the prospectus. I would think that money market labled "US Government" (and/or "agency") should be free from any major issues. If you don't have that as an option in your 401-k, you might want to talk to the HR head, or whoever handles that stuff and tell them to tell the Trustee to make a change. If they balk, show them the article.

Other alternatives are just buying treasuries outright, staying in a just a sipc insured interest bearing account, CD's, or hedging everything off and write options against it.

Also, I wouldn't worry about the fund company going teats up because the assets are not held by the management company. Most fund companies hold managment companies that are hired by the mutual fund which segregates the assets (that the fund holders own) from the rest of the stuff.

Now, chances are, everything is going to be just fine, but again, why worry about your safe money. Don't we have enough to worry about?

Mark