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(USA Today)   Current economic conditions causing money market account holders to purge their accounts, bowels   (usatoday.com) divider line 139
    More: Scary  
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6717 clicks; posted to Main » on 19 Sep 2008 at 3:20 PM (6 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2008-09-19 03:11:00 PM  
Unlike bank deposits, money market funds are not insured by the Federal Deposit Insurance Corp

Except that most consumers' exposure to money markets is through a savings account, which is insured by the bank who holds it. When read as a headline, it sounds like they're saying that bank MMDAs are somehow unsafe. They may start sucking soon, but they're still insured.
 
2008-09-19 03:22:59 PM  
The DOW can drop to 0 as long as Omarion is OK.
 
2008-09-19 03:23:16 PM  
NikolaiFarkoff: Unlike bank deposits, money market funds are not insured by the Federal Deposit Insurance Corp

Also, I believe the fed said they'd back up money markets just today
 
2008-09-19 03:23:24 PM  
Your money's not here - it's in Bill's house and Fred's house.
 
2008-09-19 03:23:37 PM  
Sally sells sinking stocks by the sea shore?
 
2008-09-19 03:23:39 PM  
Scary? Not really. Nothing's going to happen.

Stop freaking out people.
 
2008-09-19 03:24:52 PM  
I don't own any stock or property, so I'm really getting a kick...
 
2008-09-19 03:26:00 PM  
Not all of us- I bought up some ultra cheap AIG stock yesterday.

/wish it had been LEH.
 
2008-09-19 03:26:06 PM  
Yeah, I'm part of those billions withdrawing money from money market funds.

Not because I think they'll fail . . . I just want to be in a position to buy some of these cheapass stocks :-) We're just warming up, folks!
 
2008-09-19 03:26:19 PM  
The Fundamentals of our Economy are Strong.
 
2008-09-19 03:27:02 PM  
/billions OF dollars being withdrawn
//ugh
 
2008-09-19 03:27:27 PM  
Philip J. Fry: The Fundamentals of our Economy are Strong.

Yep, stupidity, greed, cronyism and theft are rockin!
 
2008-09-19 03:27:51 PM  
If you took this week off on wall street, you didn't miss anything:
** 9-12-08 close ** ** 9-19-08 **
S&P 1252 1251
DOW 11422 11391
2YR 2.21% 2.13%
10YR 3.72% 3.75%
6MO BILLS 1.55% 1.51%
FN 30 5s 98-20+ 98-20
IG10 +151 +151
 
2008-09-19 03:28:56 PM  
rodeofrog: Your money's not here - it's in Bill's house and Fred's house.

Damit Don why the hell are you knocking holes in my walls? Becuase George down at the Baily Savings and Loan said my money was in your house. Well I'm takeing it back! Do you have any idea how much scrap metal is selling for today.
 
2008-09-19 03:29:41 PM  
The real people who will lose in the debacle is the savers. At this point in time there no way out of the mess except via inflation. It's the only way left. Once again, showing how smart people can be really dumb.
 
2008-09-19 03:29:59 PM  
Geeze, you guys can "sky is falling" even when the market shares are up.
 
2008-09-19 03:31:49 PM  
Drakin020: Scary? Not really. Nothing's going to happen.


Wrong.

My bank just called me to say my cash account is frozen because of this (it's backed by the Primary Reserve Fund that went "below the buck."

Now I can't use my ATM card and I don't know when I'll have access to my money.

So, something happened.
 
2008-09-19 03:32:36 PM  
theoneontheleft: Not all of us- I bought up some ultra cheap AIG stock yesterday.

/wish it had been LEH.


AIG stock are not part of a Money Market Fund.

/TMYK!
 
2008-09-19 03:32:42 PM  
Er, "Reserve Primary Fund" I mean...
 
2008-09-19 03:32:44 PM  
People are so jumpy when it comes to the economy. You're better off just not looking at it. It goes up and down, deal with it.
 
2008-09-19 03:33:35 PM  
But there is still beer, right?
 
2008-09-19 03:34:04 PM  
Black Monday repeat? What a roller coaster.
 
2008-09-19 03:34:11 PM  
Home ownership is at an all-time high!
 
2008-09-19 03:34:16 PM  
facetiae: Drakin020: Scary? Not really. Nothing's going to happen.


Wrong.

My bank just called me to say my cash account is frozen because of this (it's backed by the Primary Reserve Fund that went "below the buck."

Now I can't use my ATM card and I don't know when I'll have access to my money.

So, something happened.


you'd better be trolling/joking dude.
 
2008-09-19 03:34:25 PM  
Could someone remind the country that it wasn't banks failing that caused the Great Depression, but everyone freaking out about it?
 
2008-09-19 03:34:38 PM  
I'd rush to the bank to withdraw my life savings, but it's not worth spending $10 in gas to save the $2.24 in my bank account.

/poor college student, will quote Nietzsche for food
 
2008-09-19 03:34:54 PM  
I closed my retirement fund because it was losing money faster than I could fund it.
 
2008-09-19 03:35:12 PM  
jimibrooks: But there is still beer, right?

HA! Drinking one as I'm reading.....I hope so!
 
2008-09-19 03:36:10 PM  
facetiae: Drakin020: Scary? Not really. Nothing's going to happen.


Wrong.

My bank just called me to say my cash account is frozen because of this (it's backed by the Primary Reserve Fund that went "below the buck."

Now I can't use my ATM card and I don't know when I'll have access to my money.

So, something happened.


Ok you and a handful of people are having a problem...If it affected a large number of people, this would be all over the news.

Again...a non issue.
 
2008-09-19 03:37:01 PM  
Epsilon: I closed my retirement fund because it was losing money faster than I could fund it.

Yeah that's smart...I hope your older because if you're in your 20's you're just retarded.
 
2008-09-19 03:37:31 PM  
I'm afraid to look at my 401K.
 
2008-09-19 03:37:55 PM  
Money market accounts are not the same as money market funds subby.
 
2008-09-19 03:38:35 PM  
sboyle1020: People are so jumpy when it comes to the economy. You're better off just not looking at it. It goes up and down, deal with it.

The biggest problem is that people either ignore it or freak out. This stuff that is happening is important and big news and not that great of news obviously but few take the time to understand the level of freakout that should occur.
 
2008-09-19 03:38:41 PM  
Single White Male: I'd rush to the bank to withdraw my life savings, but it's not worth spending $10 in gas to save the $2.24 in my bank account.

/poor college student, will quote Nietzsche for food


Damn you're rich. I have $.23 in my account.

/Also poor college student
//Had over $12,000 5 months ago
 
2008-09-19 03:39:48 PM  
vernonFL: I'm afraid to look at my 401K.

The DOW tanked but it's since then recoevered. You may see a dip but things have picked back up.
 
2008-09-19 03:39:55 PM  
ravenlore: you'd better be trolling/joking dude.

No, I'm serious. See:

http://www.iht.com/articles/ap/2008/09/17/business/NA-US-Fallen-Money-Fund.php

There was a run on the Reserve Primary Fund, so the SEC froze all accounts for that company (even those not accounts which didn't "break the buck")

It's likely only an issue if you have an ATM card tied to a "cash sweep" portion of an investment account (Vanguard, Ameriprise, etc), in which case your investment account advisor should have already notified you.
 
2008-09-19 03:40:02 PM  
Epsilon: I closed my retirement fund because it was losing money faster than I could fund it.

I may not understand very well, but why did you close it?

Are you retiring next year?, If you retirement is more than 5 years from now, you should keep funding it, because it is cheap right now, and it's gonna go back up eventually.

Especially if you are making smaller regular contributions to it, you are in a great position.

Although I am perfectly willing to be corrected by the gurus around here, it seems like a dumb move.
 
2008-09-19 03:40:39 PM  
facetiae: Drakin020: Scary? Not really. Nothing's going to happen.


Wrong.

My bank just called me to say my cash account is frozen because of this (it's backed by the Primary Reserve Fund that went "below the buck."

Now I can't use my ATM card and I don't know when I'll have access to my money.

So, something happened.


What bank do you use?
 
2008-09-19 03:41:06 PM  
sboyle1020: Epsilon: I closed my retirement fund because it was losing money faster than I could fund it.

Yeah that's smart...I hope your older because if you're in your 20's you're just retarded.


I'm not in my '20s, but what's smart is not continuing to throw money into an investment that is losing value at an alarming rate. I'll wait for the market to stabilize and re-invest it in something else.
 
2008-09-19 03:42:33 PM  
This to Ellegon

/Not a guru, just read loads of finance pages
//And was a personal finance consultant before
/And not a nazi
//???
 
2008-09-19 03:43:47 PM  
I all of a sudden have an urge to buy gold.
 
2008-09-19 03:43:49 PM  
Ellegon: Epsilon: I closed my retirement fund because it was losing money faster than I could fund it.

I may not understand very well, but why did you close it?

Are you retiring next year?, If you retirement is more than 5 years from now, you should keep funding it, because it is cheap right now, and it's gonna go back up eventually.

Especially if you are making smaller regular contributions to it, you are in a great position.

Although I am perfectly willing to be corrected by the gurus around here, it seems like a dumb move.


No, you're correct, he's a moran.
 
2008-09-19 03:44:12 PM  
Epsilon: I'm not in my '20s, but what's smart is not continuing to throw money into an investment that is losing value at an alarming rate. I'll wait for the market to stabilize and re-invest it in something else.

I have made the decision to get as much as possible into my IRA and scottrade over the next 2 years.

Forget stabilizing, get it when everyone is panicking and willing to sell cheap. I will take a hit short term but who cares.
 
2008-09-19 03:44:30 PM  
T. Rowe Price has got my money.
 
2008-09-19 03:44:59 PM  
facetiae 2008-09-19 03:39:55 PM
ravenlore: you'd better be trolling/joking dude.

No, I'm serious. See:

http://www.iht.com/articles/ap/2008/09/17/business/NA-US-Fallen-Money-Fund.php

There was a run on the Reserve Primary Fund, so the SEC froze all accounts for that company (even those not accounts which didn't "break the buck")

It's likely only an issue if you have an ATM card tied to a "cash sweep" portion of an investment account (Vanguard, Ameriprise, etc), in which case your investment account advisor should


Vanguard is literally the last mutual fund company out there to worry about.......

/VG is so conservative you could stick a lump of coal up there butt and in two weeks you'll have a diamond
 
2008-09-19 03:45:41 PM  
Someone wake me when bankers start dropping from the skys onto the pavement
 
2008-09-19 03:45:51 PM  
True Value: What bank do you use?

I have an account with Ameriprise. I also just got off the phone with a friend who had problems depositing checks written from a Vanguard-managed account.
 
2008-09-19 03:46:24 PM  
If we didn't bail out AIG we would have had a crash not a drop this week. There is real panic among the people who do this for a living, not just the public.

If you have not already, this week everyone should be buying the Wall Street Journal and at least one more good national paper and reading the business section.
 
2008-09-19 03:46:25 PM  
rib246: facetiae 2008-09-19 03:39:55 PM
ravenlore: you'd better be trolling/joking dude.

No, I'm serious. See:

http://www.iht.com/articles/ap/2008/09/17/business/NA-US-Fallen-Money-Fund.php

There was a run on the Reserve Primary Fund, so the SEC froze all accounts for that company (even those not accounts which didn't "break the buck")

It's likely only an issue if you have an ATM card tied to a "cash sweep" portion of an investment account (Vanguard, Ameriprise, etc), in which case your investment account advisor should

Vanguard is literally the last mutual fund company out there to worry about.......

/VG is so conservative you could stick a lump of coal up there butt and in two weeks you'll have a diamond


I sure hope so, that's where some of my money is.
 
2008-09-19 03:47:20 PM  
YouSirAreAMaroon: Ellegon: Epsilon: I closed my retirement fund because it was losing money faster than I could fund it.

I may not understand very well, but why did you close it?

Are you retiring next year?, If you retirement is more than 5 years from now, you should keep funding it, because it is cheap right now, and it's gonna go back up eventually.

Especially if you are making smaller regular contributions to it, you are in a great position.

Although I am perfectly willing to be corrected by the gurus around here, it seems like a dumb move.

No, you're correct, he's a moran.



Not a Maroon?
 
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