This is starting to get scary

Discussion in 'Current Events' started by Ravi, Sep 18, 2008.

  1. Ravi
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    Ravi Diamond Member

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    Putnam Investments Closes $12B Money-Market Fund


    By Binyamin Appelbaum
    Washington Post Staff Writer

    Thursday, September 18, 2008; 3:17 PM


    Putnam Investments has closed a $12.3 billion money-market fund to limit losses to its investors, the large mutual fund company said today. The highly unusual announcement is the latest sign that tremendous financial pressures are now threatening even some of the safest kinds of investments.



    The Prime Money Market Fund was open only to institutional investors. Putnam said in a statement that its board decided to close the fund last night after receiving a large number of redemption requests. The company said it could honor those requests only by selling assets at a loss, reducing the value of the remaining shares.



    washingtonpost.com
     
  2. Skull Pilot
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    Skull Pilot Platinum Member

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    Money markets traditionally relied upon mortgage backed securities so it is no wonder that MM accounts are suffering.

    I stopped using money markets after the advent of high interest savings accounts from on line banks. the rates are virtually the same with no market risk.
     
  3. Paulie
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    Paulie Platinum Member

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    Starting to?

    Rav, they STARTED to get scary about 10 years ago.
     
  4. Ravi
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    Ravi Diamond Member

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    Yeah, they were trying to prevent this from happening with the takeover of AIG, from what I understand.

    The scary part is is that money market funds are basically the bedrock of the financial system.
     
  5. Ninja
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    Ninja Senior Member

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    Conservatives making Ravi look foolish.

    Nothing to see here, move along folks :eusa_whistle:
     
  6. Ravi
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    Ravi Diamond Member

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    Ninja, the typical republican moron.
     

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