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Nickelless
Administrator
USA
5580 Posts |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 09/20/2009 : 09:57:24
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| Need clarification please. Is this talking about money market mutual fund account or all money market accounts held by banks? |
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Nickelless
Administrator
USA
5580 Posts |
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Country
1000+ Penny Miser Member
USA
3121 Posts |
 Posted - 09/20/2009 : 16:20:08
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Brokerage account Money Market Funds were given a $250,000 Federal Reserve guarantee. It's gone now.
Money held in FIDC banks, non-brokerage accounts, is still guaranteed up to $250,000 per account. |
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The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 09/21/2009 : 16:20:01
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quote:
Originally posted by Country
Brokerage account Money Market Funds were given a $250,000 Federal Reserve guarantee. It's gone now.
Money held in FIDC banks, non-brokerage accounts, is still guaranteed up to $250,000 per account.
One brokerage money market fund was involved in a lawsuite because they allowed the value of their shares to drop below a dollar. So what did they do? Why they pulled even more money out of the fund ( dropping its value even more) so they could mount a legal defense.  |
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Think positive. |
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jonflyfish
Penny Hoarding Member
USA
693 Posts |
Posted - 09/21/2009 : 16:44:29
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| Money market funds are not obligated to strike a par value of $1. If the value of the assets decline, the fund can be valued below a dollar/share. Because there is a lot of competition, it has been long understood that if you do not maintain a stable one dollar value, your credibility as a relatively "safe" short term cash alternative is pulverized and the business goes to the competition. Yes Virginia, the free markets still work. |
The first panacea for a mismanaged nation is inflation of the currency; second is war. Both bring a temporary (and false) prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunities. |
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Feds no longer backing money market funds
Forum Locked
