SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: S. maltophilia who wrote (80843)5/18/2000 10:35:00 AM
From: Knighty Tin   of 132070
 
Khalil, ABN/AMRO is a major player in the brokerage and trading business. However, they are very vulnerable to any meltdown in the US stock market scam. Some of the money funds make me want to lose my lunch when I see what they consider "no-risk" credits.

We have seen many meltdowns in these "Prime" credits in the past. If you remember a few years back, Alliance and other money funds had to receive an infusion of parent company cash to make up for the managers' stupidity in Mexican paper. But what happens when the system is the risk, not the rescuer?

I like Treasury funds or Govt. funds who actually take delivery of too much collateral on their repos. Yes, I do believe the Freddies and Fannies have problems in their future, but I also believe the Congress will give me time to bail after they become obvious. I don't believe these derivative gambler banks and brokerage firms that litter money fund portfolios will offer the same window of exit opportunity.

That being said, some money funds are safer and more conservative than others. The Prime 1 funds at Vanguard and Benham-American Century stand out for the quality of their issues, the shortness of the paper, and their wide, wide diversification. The ones who advertise their yields tend to stand out for the opposite reason.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News