HUGE!! Schwab Is Forcing Your Cash Out Of Money Market Funds And Into Treasuries!!!

[ShootSpeeders]

America is the most corrupt nation in history.

Schwab Is Forcing Cash Out Of Money Market Funds And Into Treasuries | Zero Hedge

may 1 2016 While perhaps not quite as dramatic (or confusing) as last week's announcement by Scottrade that the discount online broker would no longer allow Canadian citizens to hold accounts, in a new surprising development, another online broker, Charles Schwab has started informing some of its clients that "between June and October 2016, Schwab will update the cash feature on your account(s) from the current retail prime or municipal money market fund sweep to the Schwab Government Money Fund" or the SWGXX, which "will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, at least 80% of the fund's net assets will be invested solely in U.S. government securities including repurchase agreements. "

In other words Schwab is telegraphing that brokerages have begun permanently unwinding hundreds of billions if not trillions in money market-funds, and rotating it almost entirely into government securities.

Recall that according to the punditry, one of the biggest hindrances to NIRP in the US is the trillions of dollars held in money market accounts. Well, one way of overcoming this "problem" is to preemptive begin a mandatory sweep pushing all money market-parked cash into government-linked securities

 

[Katzndogz]

The government is broke. They will steal it from the people. Next, raid retirement accounts.

 

[DarkFury]

The government is broke. They will steal it from the people. Next, raid retirement accounts.

Not to much longer and we will have one of those Greece style tax days where they strip 10% right out of your account.

 

[Asclepias]

The government is broke. They will steal it from the people. Next, raid retirement accounts.

The government is never broke. All they have to do is have the treasury print some more money.

 

[Tehon]

America is the most corrupt nation in history.

Schwab Is Forcing Cash Out Of Money Market Funds And Into Treasuries | Zero Hedge

may 1 2016 While perhaps not quite as dramatic (or confusing) as last week's announcement by Scottrade that the discount online broker would no longer allow Canadian citizens to hold accounts, in a new surprising development, another online broker, Charles Schwab has started informing some of its clients that "between June and October 2016, Schwab will update the cash feature on your account(s) from the current retail prime or municipal money market fund sweep to the Schwab Government Money Fund" or the SWGXX, which "will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, at least 80% of the fund's net assets will be invested solely in U.S. government securities including repurchase agreements. "

In other words Schwab is telegraphing that brokerages have begun permanently unwinding hundreds of billions if not trillions in money market-funds, and rotating it almost entirely into government securities.

Recall that according to the punditry, one of the biggest hindrances to NIRP in the US is the trillions of dollars held in money market accounts. Well, one way of overcoming this "problem" is to preemptive begin a mandatory sweep pushing all money market-parked cash into government-linked securities

America is the most corrupt nation in history.

Isn't capitalism just grand.

 

[RoshawnMarkwees]

The government is broke. They will steal it from the people. Next, raid retirement accounts.

The government is never broke. All they have to do is have the treasury print some more money.

I bet you think you're not broke as long as you have checks.
Democrats should not be allowed to vote.

 

[Asclepias]

The government is broke. They will steal it from the people. Next, raid retirement accounts.

The government is never broke. All they have to do is have the treasury print some more money.

I bet you think you're not broke as long as you have checks.
Democrats should not be allowed to vote.

Thats true. As long as checks come into my bank account i am not broke. i dont have a problem with Democrats voting. Its the dumb repubs that make me shake my head at their stupidity. Especially the poor ones like you.

 

[Manonthestreet]

WOnder how many people will start moving some of their cash to other accounts and only put in back in their brokerage account when they have concrete pick

 

[Asclepias]

WOnder how many people will start moving some of their cash to other accounts and only put in back in their brokerage account when they have concrete pick

Self Directed Roth IRA is where you keep your money. Bet on yourself.

 

[Dont Taz Me Bro]

The government is broke. They will steal it from the people. Next, raid retirement accounts.

The government is never broke. All they have to do is have the treasury print some more money.

I bet you think you're not broke as long as you have checks.
Democrats should not be allowed to vote.

Thats true. As long as checks come into my bank account i am not broke.

Until all their massive printing of money results in hyperinflation rendering your bank account about damn useless. See Zimbabwe and Venezuela.

 

[ShootSpeeders]

The government is never broke. All they have to do is have the treasury print some more money.

Sad but true. America always has that option. Eventually the world will reject the $ but until then they can just create money.

 

[ShootSpeeders]

The government is never broke. All they have to do is have the treasury print some more money.

I bet you think you're not broke as long as you have checks.
Democrats should not be allowed to vote.

You think YOU have the same rights as govt?. You print money and you go to the can for counterfeiting.

 

[RoshawnMarkwees]

The government is never broke. All they have to do is have the treasury print some more money.

I bet you think you're not broke as long as you have checks.
Democrats should not be allowed to vote.

You think YOU have the same rights as govt?. You print money and you go to the can for counterfeiting.

Worthless money is a rubber check.

 

[Slave2the$]

I believe fidelity is doing this too. This is a sign and it is not good. The govt must be having a problem getting other governments and people to buy treasuries or they wouldnt do this.

 

[Tehon]

I believe fidelity is doing this too. This is a sign and it is not good. The govt must be having a problem getting other governments and people to buy treasuries or they wouldnt do this.

It has more to do with removing obstacles that stand in the way of implementing emergency policies that may be needed during the next market collapse. Sales of 30 year bonds was strong in April.

 

[ShootSpeeders]

I believe fidelity is doing this too. This is a sign and it is not good. The govt must be having a problem getting other governments and people to buy treasuries or they wouldnt do this.

Shoot. I have some money with fido. Yes - this is a bad sign.

 

[Slave2the$]

Fidelity had a "fidelity cash reserves" account. As of 12-1-2015 it is now called the "fidelity government cash reserves". It's all government debt we are buying with our cash. What is going on?

 

[Slave2the$]

I believe fidelity is doing this too. This is a sign and it is not good. The govt must be having a problem getting other governments and people to buy treasuries or they wouldnt do this.

It has more to do with removing obstacles that stand in the way of implementing emergency policies that may be needed during the next market collapse. Sales of 30 year bonds was strong in April.

Yes, a strong signal that says were fucked. We see the train but refuse to get out of the way. They are preparing and probably even know the day of the impending collapse.

 

[Tehon]

I believe fidelity is doing this too. This is a sign and it is not good. The govt must be having a problem getting other governments and people to buy treasuries or they wouldnt do this.

It has more to do with removing obstacles that stand in the way of implementing emergency policies that may be needed during the next market collapse. Sales of 30 year bonds was strong in April.

Yes, a strong signal that says were fucked. We see the train but refuse to get out of the way. They are preparing and probably even know the day of the impending collapse.

Well it's inevitable really, but they are trying to do you a favor. Japan implemented a negative interest rate policy and it killed the money market funds so investors started buying up government bonds as an alternative. They appear to be paving the way for our future here now.