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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (93558)	12/14/2001 9:53:07 AM
From: Tommaso	Read Replies (2) \| Respond to of 132070

"What hasn't been tested is handling several big cos. in different industries." How about if confidence faltered and large numbers of investors who were keeping their savings in MM funds decided they wanted to move that money into bank CDs? That would be kind of like the runs on banks. Indeed, if MM funds go flat, and banks can keep paying even 1.5%, there would be a reason to make the change. And even more reason if a few more corporate failures began chipping 1% here and there from the principal of MM funds. Now wouldn't it be weird if the Fed's interest rate cutting resulted in a concerted effort to cash in MM funds? They are obligated to redeem at par--though who knows what fine print there may be about delays. When I first opened a savings account I had to give 30 days notice to take my money out of that--and once I went down to my credit union to withdraw some cash for a trip and they told me, blandly, that they didn't have any money that day. But those were the olden days. This is "la nouvelle siecle," right? <g>