Treasury to Guarantee Money Market Funds

[brooklynite]

Source: New York Times

The federal government took two actions on Friday to shore up money market funds, which have long been considered as safe and risk-free as a bank savings account, but which have come under stress in the current market turmoil.

The Federal Reserve said that it would expand its emergency lending program to help support the $2 trillion in assets of the funds.

And the Treasury Department said that it would guarantee, at least temporarily, money market funds up to an amount of $50 billion in order to ensure their solvency.

“For the next year, the U.S. Treasury will insure the holdings of any publicly offered eligible money market mutual fund — both retail and institutional — that pays a fee to participate in the program,” the Treasury said in a statement .

Read more: http://www.nytimes.com/2008/09/20/business/20moneys.html?ref=business

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Quick! Cut taxes to pay for it!

[foxer]

1. $50 billion is only 550 TONS of $100 bills, no problem

[FreeStateDemocrat]

2. So someone with millions in a money market account will have it insured by working class taxpayers?

[fascisthunter]

3. so the American Tax Payer is a Slave to the Wall Street

[tbyg52]

4. Am I the only one that finds this ridiculous?

People who put money into these knew or should have known whether they were insured or not. The people putting money into them, I'm guessing, had a fair amount of money, enough to justify the extra risk for the extra interest.

What are they gonna do next, insure my stock and bond mutual funds? I *wish*........!

[bean fidhleir]

7. I've most of my (meager) retirement savings in a mm mf, because the stock market is

nothing but a casino where the dice are loaded, the wheels have electromagnets, and the cards are marked - all for the benefit of the wealthy.

I didn't realize the non-credit-union account isn't insured. For some reason, I thought the SEC/industry insured against catastrophic losses.

[tbyg52]

9. We are all being pulled under for the benefit of the "ruling" class

I'm thinking we will have to take to the streets. I hate living in "interesting times."

[tbyg52]

12. I see your point.

I didn't realize *any* of them were insured (before yesterday, I mean) because when they first came out they weren't.

[glinda]

13. We have the same deal

Husband has part of his meager retirement in MM. But we have been inured on it from the beginning so I do not understand. The extra money from it goes to pay out health insurance and we even had to go to a less effective health insurance plus now we even have to add in over $100 per month off the top of our living. Overall husband has lost thousands of his retirement savings. We worry all the time now. Especially me since I have to cut here and there every single month to pay bills.

[kiranon]

5. With what? FDIC can't even cover WaMu if it goes under. n/t

[tbyg52]

6. Exactly. nt

[trudyco]

8. Hyper-inflation being served up? -nt

[Amonester]

10. DING DING DING DING DING DING

Historic recounts of what tons and tons of freshly printed currencies can "encourage" sellers to "ask for more, more, more" on a monthly basis first...

Then... on a weekly basis...

Then... on a daily basis...

Then... every hour....

Then... each minute...

History? Wutz dat??

See Germany (again?) in the 19 twenties...

[tbyg52]

11. Will somebody PLEASE get this up to five recs? (And then repost it!) nt

[Zorra]

14. What are they backing up this "guarantee" with? Future loans from China

and taxes yet to be paid?

Maybe they have huge land holdings 100 miles due west of San Francisco they can sell?