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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Lucretius who started this subject1/29/2001 9:54:48 PM
From: KeepItSimple  Read Replies (1) of 436258
 
wow, I did not know this. 45% of paper is being backed by money market funds? Holy crap this is a train wreck waiting to happen.

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Funny thing, though. Each time this happens, it increases investors' expectation that it will always happen. Before you can say "moral hazard," that presumption becomes a supporting beam of the whole money market. For perspective, according to the Investment Company Institute, money funds buy about 45 percent of all commercial paper.
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