The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: CalculatedRisk who wrote (147109)	9/17/2008 4:21:38 PM
From: GraceZ	Read Replies (1) of 306849

re: Primary Reserve MMF, back when we had the BS debacle I wrote a post on here detailing the sheer amount of Bear Stearns paper these guys were holding at the time, it was in the billions and a huge percentage of their holdings. They lived through that thanks to the FED/JPM bailout and then turned around and ended up being left holding the LEH bag. They are certainly not the first MMF to have trouble during this crisis, but they are the first to break the buck. The other major MMFs that got into trouble this year were quietly bailed out by their well heeled parent firms with cash infusions to keep them from breaking the buck. Primary Reserve doesn't have a parent company, therefore they were forced to show the loss. This is the point where people learn the difference between cash and cashlike. Primary Reserve is the MMF used by my former broker, Ferris Baker Watts. My husband still has an IRA there. I have to feel for some poor sucker, fearing losses in the market, who went to cash in those accounts only to find out cash wasn't really cash but a MMF that lost value.

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