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

To: stockfiend who wrote (89007)	10/24/2008 3:04:12 AM
From: stockfiend	Respond to of 116555

Yields Bedevil Money-Market Managers "As if money-market fund managers didn't have enough headaches, here is yet another challenge: dwindling yields because of the Federal Reserve's interest-rate cuts." "Official rates have fallen 3.75 percentage points to 1.5% in the past 13 months as the Fed faced a spreading financial crisis that dragged down the economy. Yields on money-market funds have fallen significantly as a result, as they tend to track fed funds, albeit with a lag. If the Fed cuts rates to 1% or even below to help the economy, those yields will fall further, hurting the funds' profitability." online.wsj.com The Fed is yet again trying to goad money off the sidelines and into the economy/markets. It'll eventually work if inflation stays well above zero.