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To: Mark Adams who wrote (74080)3/1/2001 4:13:41 PM
From: LLCF  Respond to of 436258
 
<Money fund cash may be seeking additional basis points as MMF's tend to hold 90 day paper that drops slower than CD and MMA rates. Theory was this money may not be destined for stocks. >

LOL, hell I could use a quick 5% a week in my checking account balance!

DAK



To: Mark Adams who wrote (74080)3/1/2001 4:43:22 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
that's my theory as well - not re. the capture of additional bps., but rather that it is NOT money destined for the stock market.

anyway, the additional bps. that can be captured with MM funds may be a good explanation...also, let's not forget that the GSE's continue to expand their balance sheets at truly jaw dropping rates...that creates MM fund deposits as well.

see D. Noland for the explanation of the process.