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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Michael Watkins who wrote (46441)	4/15/2000 7:25:00 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99985

By "breaking the buck" I was referring to the possibility that major money market funds might lose their "safe haven" staus as some of their securities fail to pay the interest due on time. That obviously would have a big impact on the foreign exchange value of the dollar, but the ramifications could go much further. Couild trigger panic runs on money funds and banks and a mad dash to treasuries and possibly even gold. Not a positive for the stock market obviously. Given the huge expansion in debt over the past few years and the extreme leverage in the financial system now, I suspect that quite a lot of this debt will default at some point.