Use access key #2 to skip to page content.

alstry (35.41)

ALERT: Is anything safe????

Recs

13

September 16, 2008 – Comments (5)

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.

5 Comments – Post Your Own

#1) On September 16, 2008 at 6:55 PM, lquadland10 (< 20) wrote:

Hit them where it hurts. Pay cash. No credit card transaction fee for them. 10% to the church or 10% to your neighbor loosing his house. You are still giving your tithe but bypass the middle man and go to the source. Be creative in the way you say no more. Take your non Fdic money market fund and pay off your car loan or house loan or property taxes for 2 years. Clear off any debt and say no more. The quiet revolution.

Report this comment
#2) On September 16, 2008 at 7:46 PM, BradAllenton (31.35) wrote:

I feel the same way, don't spend anything you don't have to. Cut all your debt waaayyy back, if you can. Ditch some fancy gadgets, sell stuff you don't need to generate money and then only work as hard as you have to to live. Fight back by doing less to contribute to the FKD up system. 

Report this comment
#3) On September 16, 2008 at 8:32 PM, alstry (35.41) wrote:

None of the above suggestions matter.  Practically everyone of our cities and states and businesses are leveraged....if enough fail....we all fail because the banking system fails and none of us have any money.

You can't destory the heart unless you find a replacement first.

Report this comment
#4) On September 16, 2008 at 8:45 PM, BradAllenton (31.35) wrote:

Who needs money? It has no real value anyway. Try to give it to a dog and when it turns it's nose to it you will see what survival use it has. Besides nobody said  dont' use any money, only use what you need. In other words stop the over consumption and clean up your debt. I think that advice "matters" as a matter of fact I'm pretty sure it's what is at the heart of this mess.

Report this comment
#5) On September 16, 2008 at 9:09 PM, alstry (35.41) wrote:

Money is a debt instrument.....it is a note....take a look at a dollar one day.

The problem is the government is taking over our businesses and not a single politician gives a damm.  Our largest mortgage company, our largest insurance company....what's next...our largest auto company and our largest airline.  How can private business compete with the government when the government can print all the money it wants if it ever runs low.

Bankruptcy was designed to create positive destruction and allow the most competitive to survive drive growth.  Now the government is coming in and selectively chooses who lives and who dies.

We have a constitution folks...there is an equal protection clause in there where justice is supposed to be blind.  As more and more selective business die, more and more will be unemployed where in the end most will be unemployed and few will be working for the state.

Just what happened to America in the last week is unprecedented.

Report this comment

Featured Broker Partners


Advertisement