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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (52911)	11/14/2007 1:51:57 PM
From: Proud Deplorable	Respond to of 78416

I'm not the one predicting it....there are thousands of experts doing it for me...uh oh...this just in ------- Subprime fallout hits big money market funds By John Waggoner, USA TODAY Bank of America (BAC), stung by the fallout in subprime mortgages, acted Tuesday to safeguard a bedrock investment of ordinary Americans: money market mutual funds. The bank said it planned to set aside $600 million to cover potential losses in its money market funds and an institutional cash management fund. The action by the second-largest U.S. bank is the largest recent step by a financial institution to ensure that its money funds aren't forced to reduce the value of their shares. Money funds have long appealed to people as super-safe investments. And they've kept their share prices fixed at $1 a share. But unlike banks' money market deposit accounts, money funds are not federally insured. The crisis in subprime mortgages has jolted the market for the short-term securities that money funds invest in. Even so, assets in money funds recently hit a record $3 trillion. Bank of America's move is a sign of how the crisis has gone beyond complex institutional portfolios to potentially affect everyday savers. The bank said in a filing with the Securities and Exchange Commission that $300 million of the money will be used by a group of its money funds that are offered to individuals. The other $300 million will support an institutional cash fund, which isn't technically a money fund. The money would help keep the funds' share price at $1 if some of their holdings defaulted. Several other financial institutions have also bolstered their money funds: