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To: patron_anejo_por_favor who wrote (88805)	3/19/2001 9:48:23 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 95453

Interesting article you wrote on MMF being used as a slush fund for junk debt. I'll accept the veracity of your analysis and facts, while asking you this question. When a schmuck like myself is holding cash in my brokerage account, my funds are automatically shuffled into an interest bearing money market fund that pays interest (around 5% the last time I bothered to check). So if many of those MMF debt instruments go into default, wouldn't this just reduce the amount of interest that I receive rather than reducing the quantity of principle that was automatically transferred into that MMF by my broker? IOW, let's say I have a 100K that gets pushed into an MMF, on which I receive 5% interest. If we see massive defaults in MMF debt instruments, aren't they still obligated to pay me back my 100K, regardless of the amount of interest that the fund generates for the usage of my money? I have to admit that I've always considered MMF as similar to a short-term CD that pays interest simialiar to a checking account. If I'm wrong, then we really need to watch the M indicators more closely to see if there is an increase in M1 and a decrease in M2 and M3. Regards, Ron