The Beginning Of The End Of Money Market Accounts

Discussion in 'Wall St. News' started by libertad, Mar 29, 2008.

  1. http://online.wsj.com/article/SB120672890827072299.html?mod=yahoo_hs&ru=yahoo

    For many years....commencing with Merrill Lynch Ready Assets....investors have piled in more than a $1 trillion in supposedly cash equivalent money market funds....

    This highly suggests that 90 day tbills will indeed go to 0% yield, just for the safety of government insurance....

    Basically the same as has happened in Japan.....

    Can you say.....UH..OH......

    The financial world is becoming filled with more land mines ready to blow at every financial step....

    The payments for incompetence....are very high indeed....
     
  2. given all the things that have happened as of late, the scenario is one of collapse and a 'Great Depression' style playout.

    the final leg will be when the market is artificially rallied to close to the old highs and is brought down in percentage wide decline over time...bear market (oh wait that has already happened and is happening)...

    ..
     
  3. bullhonkey. All this doom and gloom on ET probably means we're on the verge of the biggest economic expansion in the history of th world.
     
  4. We probably are headed for a depression simply because I am always predicting a bad scenario that turns out better than I expect--yet everything keeps getting worse than I predicted, not better. For 20 yrs it's always been better than i predicted.
     
  5. Well...

    1. There IS a big "double top" in the SPX, and

    2. The rally from '03, was likely an artificial manipulation of credit/housing prices.

    However.... during currency "destruction/inflation", equity markets tend to soar. Unfortunately, that's not something to hope for. The loss in buying power is ultimately much greater than equity market increase. (During the latest fiasco in Turkey, 1982-2005, the equity market soared more than 2 MILLION PERCENT.... but even with the gains, equity market holders lost 98% of their buying power in the issuance of the new currency..)
     
  6. stop making up shit. those investments were long-term bonds that now have little liquidity so the greedy investors are losing money. they're not anything like a money market fund
     
  7. Excellent Commentary All
    .........................................................................................

    All money market funds to date have enjoyed a $1 in $1 out asset invest/liquidation ratio....

    Obviously risks have increased for this not to be the case in this environment.....

    Very few if any people check what makes up these funds....

    One would think it prudent to be very wary in todays environment....

    There are a lot of AAA believers that wish they were wary before they lost money....

    It is highly unlikely that the money market sector will go unscathed....

    Be wary....
     
  8. himself

    himself

    In view of those factors do you trade with a negative bias?
     
  9. props to my gnomies!
     
  10. You must pride yourself on your great after the fact insight.

    You could have made a ton of money warning those with 300 billion invested in these to get out before it all collapsed.

    Bet ya didn't make a dime.

    But talking nonsense for free, right here on good old ET.

    And you're overpaid at that.
     
    #10     Mar 29, 2008