There are quite a few money market funds that invest in "safe" high quality debt instruments issued by agencies such as Fannie Mae. Are these now at risk?
Money market funds at risk?
- Thread starter tropicaltrader
- Start date
If you haven't heard yet, Fannie is bankrupt. Only a fool would keep their money with them knowing this.
Pit Bull - Martin "Buzzy" Schwartz
Going for the Gold II
page 162.....................
1) keep some cash in the home safe...
2) reduce account balances below 100K in bank accounts...
3) payoff high interest outstanding debt using excess savings..
4) keep mortgage debt (low interest) ...
5) withdraw gold and valuables from safe debosit boxes and put them in house safe...
"Buzzy what are you doing?"
" It doesn't feel right. I'm going for the gold"
Going for the Gold II
page 162.....................
1) keep some cash in the home safe...
2) reduce account balances below 100K in bank accounts...
3) payoff high interest outstanding debt using excess savings..
4) keep mortgage debt (low interest) ...
5) withdraw gold and valuables from safe debosit boxes and put them in house safe...
"Buzzy what are you doing?"
" It doesn't feel right. I'm going for the gold"
There's no such thing as a long-term money market fund. By definition, the maturity of their holdings must be 180 days or less.
For your education, they don't only invest in Tbills. They can invest in agency bonds, govnt bonds, repos, CDs and corporate bonds. I suggest you look at the prospectus of some MMFs.
MMFs are not insured by the Feds. but may have other counterparty insurance which MAY protect you from fraud etc.
otherwise, you're just another swinging dick creditor in the event of default.
some Fannie sort term paper was NO BID on Friday...
that may change but it may not...
sleep tight.
otherwise, you're just another swinging dick creditor in the event of default.
some Fannie sort term paper was NO BID on Friday...
that may change but it may not...
sleep tight.
Quote from Spectre2007:
Pit Bull - Martin "Buzzy" Schwartz
Going for the Gold II
page 162.....................
1) keep some cash in the home safe...
2) reduce account balances below 100K in bank accounts...
3) payoff high interest outstanding debt using excess savings..
4) keep mortgage debt (low interest) ...
5) withdraw gold and valuables from safe debosit boxes and put them in house safe...
"Buzzy what are you doing?"
" It doesn't feel right. I'm going for the gold"
Buy South Afrian goldbars and bury them under the yumm yum tree. Mark the spot with nice flowers growing and shrubs..