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

To: KymarFye who wrote (74425)	4/7/2001 6:55:35 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99985

The amount of debt outstanding and the value of money fund assets is exponentially greater today than during the 198os S&L crisis. You hit on my point exactly. Since it has never happened before (at least not since the 1930s) people assume that a genuine loss of confidence in the financial system is impossible. Well that proposition is going to be put to the test in the months ahead.

To: KymarFye who wrote (74425)	4/7/2001 7:41:00 AM
From: Square_Dealings	Read Replies (2) \| Respond to of 99985

<When was the last time, if ever, that money funds were seriously threatened?> After the 1930 stock market crash. The public lined up outside the banks to withdraw the 10% of their funds they we're allowed to withdraw and the rest was lost. I think its a good idea, as George C. has suggested, if you have uninsured money funds to look for a government bond or gold to store it at least temporarily until the dust settles out from a possible credit collapse. M.

To: KymarFye who wrote (74425)	4/7/2001 9:49:37 AM
From: c.hinton	Respond to of 99985

The S&L problem was a problem of local banks with local bad loans, each different from the other,contagion was not really a risk.I am not sure that can be said about Money market funds of banks today.As investors abandon the stock market they swell the MM funds, they in turn, purchase more commercial paper, perhaps, of an increasingly dubious nature to maintain high yields. What happens then if the bond market tanks? Ebola like contagion. . The market has consistantly underestimated the severeity of this down turn and will , imho, continue to do so.