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To: patron_anejo_por_favor who wrote (202316)	11/5/2002 8:43:48 AM
From: John Madarasz	Respond to of 436258

read slowly<g> messages.yahoo.com

To: patron_anejo_por_favor who wrote (202316)	11/5/2002 9:07:23 AM
From: oldirtybastard	Respond to of 436258

that's just more reason to trade your bucks for stocks, where can i buy some fo that IBM before they run out of shares? -g-

To: patron_anejo_por_favor who wrote (202316)	11/5/2002 1:09:43 PM
From: Mike M2	Respond to of 436258

patron, i agree AG is the most destructive Fed chairman in history. to the clowns who scoff at this i will only say wait and see the die has been cast with no way out. Mike

To: patron_anejo_por_favor who wrote (202316)	11/5/2002 2:33:43 PM
From: reaper	Read Replies (1) \| Respond to of 436258

WSJ ran a similar story a couple of weeks ago.... note that this 'breaking the buck' is NOT due to credit losses though (which is what we are generally worried about) but due to the fact that when you charge 100 bps to run a money market fund you can't offer a return with short rates at 150 bps. Cheers

To: patron_anejo_por_favor who wrote (202316)	11/5/2002 3:00:33 PM
From: yard_man	Respond to of 436258

time to take out another loan from the 401k and put it is something truly trashy?? <g>

To: patron_anejo_por_favor who wrote (202316)	11/5/2002 5:20:04 PM
From: Tommaso	Respond to of 436258

Earlier story on same thing: Message 18156153 What would be the implication of large-scale liquidations of money-market funds? To do that, they would have to sell the commercial paper in the fund, and that would drive interest rates even lower. Then the money they gave their customers would go into banks. But whom would they sell to, if a bunch of them sell at once? They would have to demand repayment when the paper came due. The commercial firms issuing the paper would find no takers. Wouldn't there be massive "reintermediation"? The firms needing credit would have to go to the banks. The demand for these loans might send up short term interest rates that banks charge. I can't keep all this in mind but it sounds like it could result in some kind of credit crisis. Let's see, this commercial paper finances inventories and business transactions that are in process.The lack of demand for the paper must mean that inventories are contracting and business is slowing down. Keynesian liquidity trap? Banks are already desperate for higher-interest borrowers. I turned down a $100,000 credit line and am living off a $20,000 no-interest-till-August 2003 credit card. I guess they hope to recoup in two months the interest they have given up over nine months. I might as well admit, I don't have the slightest idea what all this is leading to but I cannot believe that the outcome looks very promising.

To: patron_anejo_por_favor who wrote (202316)	11/5/2002 9:37:04 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 436258

patron, The expense ratio problem is an easy one to fix: charge lower expenses. Better to keep some of the assets than let them all go to the biggest money funds. The quality problem is one that concerns me greatly. I read the names in "Prime" money fund portfolios and I gag sometimes. Ford? Gimme a break! Credit Suisse or J.P. Morgan? Not with my nickle, please. That's why so many brokerage firms are running to bank deposit accounts, where you are insured by the FDIC on the cash up to $100,000. In fact, I know of one firm that has 10 banks, so they can offer a cool mil in FDIC insurance. No hints, but I work there. <g>