This is starting to get scary

[Ravi]

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

 

[Skull Pilot]

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.

 

[Paulie]

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

Starting to?

Rav, they STARTED to get scary about 10 years ago.

 

[Ravi]

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.

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.

 

[Ninja]

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.

Starting to?

Rav, they STARTED to get scary about 10 years ago.

Conservatives making Ravi look foolish.

Nothing to see here, move along folks

 

[Ravi]

At the same time, money-market funds are an important source of money for U.S. corporations outside the financial industry. A decline in the availability of that funding could restrict economic growth by raising the cost of borrowing from other sources.

Ninja, the typical republican moron.