ALERT: Is anything safe????
NEW YORK (MarketWatch) -- One of the first and largest money market funds has put a seven-day freeze on redemptions after the net asset value of its shares fell below $1. Primary Fund a $62 billion fund managed by money market fund inventor The Reserve, said Tuesday afternoon that its $785 million holding of Lehman Brothers Holdings debt has been valued at zero. As of 4 p.m., the value of the fund's share is 97 cents. The Reserve said that redemption requests received before 3 p.m. Tuesday will be paid out at $1 a share.
A seven day halt on redemption for one of the LARGEST money market funds????? The value of the fund broke a buck??????? What happens if someone needs his or her "liquid" money today?
As failures get larger and larger...it gets harder and harder to hide the distress. Most of the large institutional pools of money have limted placed where they can invest the dollars.