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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (88856)	10/21/2008 2:10:27 PM
From: stockfiend	Respond to of 116555

Prepayment risk perhaps?

To: Crimson Ghost who wrote (88856)	10/21/2008 3:23:17 PM
From: XBrit	Respond to of 116555

My only experience is with Schwab's Govt Money fund. That one is split between FNM/FRE paper and treasuries held in tri-party repo arrangements. I think the concern is with the tri-party repo's. The 3rd party there is a bank holding the treasuries as custodian. I believe the assets can get frozen for long periods if the bank goes under. For Schwab, I see Credit Suisse and UBS as custodians, among others. Maybe UBS is OK now the Swiss govt bailed them out.

To: Crimson Ghost who wrote (88856)	10/21/2008 3:31:04 PM
From: mishedlo	Respond to of 116555

The market does have doubts. Perhaps those doubts are about when this stupid arrangement ends Mish

To: Crimson Ghost who wrote (88856)	10/21/2008 3:31:40 PM
From: mishedlo	5 Recommendations Read Replies (1) \| Respond to of 116555

Something For Nothing vs. Paradox of Deleveraging globaleconomicanalysis.blogspot.com Earlier today, in Keynesian Claptrap From PIMCO I spoke of the ridiculousness of the paradox of thrift. Here two more articles worth your time reading that rebut the seemingly never ending Keynesian Claptrap coming from the likes of Bernanke, Paulson, PIMCO, Roubini, and Krugman. I make the above statement with one reservation. Nouriel Roubini has called this economic disaster as good as anyone. I commend him for many brilliant calls. However I simply cannot sit back and say nothing about the barrage of bad economic thinking in regards to the solution to this crisis coming from everyone in the group above. With that out of the way, let's continue with a review of an article by Austrian economist Frank Shostak about the paradox of deleveraging. ... Mish