MMF falls below $1 NAV

Wow, they just set the bar for other firms that hold Lehman debt due to the fact that the fund just wrote all of its Lehman cp and mtn holdings right down to zero - and if a money fund is that aggressively conversative in taking the immediate hit, other companies holding Lehman debt are going to have a very hard time making the case that their Lehman holdings are worth 60 cents on the dollar, 80 cents on the dollar, etc. Just food for thought...
 
I wonder if US government bonds are really risk-free anymore. Now they have to rewrite all the finance text books on risk free instruments.
 
Quote from stock777:

nothing is risk free, not even cash

get over it.

you'll be dead eventually anyhow
More...

so there is something free of risk - ultimately...
 
The bail out of MMF is enormous. While FDIC only assumes 100k liability for a bank account, it assumes ALL for an MMF accout!!! MMF is more secure than banks now. They should put a halt for new fund entering MMF.
 
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