Oldest US Money Market Fund Withdrawls Suspended

Zynox · 09-17-2008, 07:10 AM

Folks, be very aware (abate fear and act accordingly).

The financial house of cards is being revealed in real time, before your eyes:

"Reserve Primary Fund, the oldest U.S. money-market fund, became the first in 14 years to expose investors to losses after writing off $785 million of debt issued by bankrupt Lehman Brothers Holdings Inc.

Shareholders pulled more than 60 percent of the fund's $64.8 billion in assets in the two days since Lehman folded. Losses on the securities firm's debt forced the fund to break the buck, meaning its net asset value fell below the $1 a share price paid by investors, New York-based Reserve Management Corp., its closely held owner, said yesterday in a statement. Redemptions were suspended for as long as seven days."

http://globaleconomicanalysis.blogsp...-suspends.html

Namaste

bluestix · 09-17-2008, 07:21 AM

Quote:

Originally Posted by Zynox

http://globaleconomicanalysis.blogsp...-suspends.html

Namaste

Your link is broken.

09-17-2008, 07:10 AM	#1
Zynox Avalon Senior Member Join Date: Sep 2008 Location: Ann Arbor, Michigan Posts: 243	Oldest US Money Market Fund Withdrawls Suspended Folks, be very aware (abate fear and act accordingly). The financial house of cards is being revealed in real time, before your eyes: "Reserve Primary Fund, the oldest U.S. money-market fund, became the first in 14 years to expose investors to losses after writing off $785 million of debt issued by bankrupt Lehman Brothers Holdings Inc. Shareholders pulled more than 60 percent of the fund's $64.8 billion in assets in the two days since Lehman folded. Losses on the securities firm's debt forced the fund to break the buck, meaning its net asset value fell below the $1 a share price paid by investors, New York-based Reserve Management Corp., its closely held owner, said yesterday in a statement. *Redemptions were suspended for as long as seven days.*" http://globaleconomicanalysis.blogsp...-suspends.html Namaste