Real Estate Investor · Gainesville, FL · Member since 2008 · 296 posts · 7 votes
17y
The FDIC insures up to $100k for normal bank accounts. I would check to see if your MM is FDIC insured. I wouldn't be surprised if it wasn't.
Even it if is, it doesn't mean it's 100% safe. The FDIC is going through some problems as well.
A friend of mine has been trying to get her $$ out of AIG for a week now. So, you can tell them you want your money out, but it's just a matter of when you get it.
Real Estate Investor · Gainesville, FL · Member since 2008 · 296 posts · 7 votes
17y
Originally posted by Jon Holdman:
AIG's not a bank and not FDIC insured. In the previous failures, folks were able to easily get their insured money.
Right, all the more reason to check to see if the account is FDIC insured. I think a lot of people just assume if you put your money in an account, it's insured.
Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
17y
Principal of my firm lives in DC and his neighbor is a Senator on a banking committee. He was talking to him a couple of weeks ago and big shots from several firms with large money market funds (some named here) testified that they were tapped out and if something wasn't done quickly, they would all have to 'break the buck' as nobody is buying what they would be forced to sell. Then we got the money market backstop on Sept 19. For details to your questions, go directly to the treasury http://treasury.gov/press/releases/hp1163.htm Now the fed is buying commercial paper (one of the main things MM's hold) to help MM's out. The Government has also changed its tune on who to bail out based on the amount of short term loans outstanding to protect MM's-so moral of the story is, MM's are going to be safe. Ours is a 'faith-based' economy and if people lose faith in MM's, we're in for a heap of trouble. The government will pull out all the stops to make MM's good.
Also,interesting side note, the bond/futures/gold markets are showing that the Fed did a 'super-secret' interest rate cut last night from 2.0% to 1.25%. Not positive why they haven't come out publicly with this unless it is to help the banks with a larger spread by lowering their cost of money while keeping the prime rate the same for borrowers.