muzie_IHB
New member
<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aAj1pHOSthQA&refer=home">Reserve Primary Money Fund Falls Below $1 a Share</a>
"Reserve Primary Fund became the first money-market fund in 14 years to expose investors to losses after writing off $785 million of debt issued by bankrupt Lehman Brothers Holdings Inc.
The fund, whose assets plunged more than 60 percent to $23 billion in the past two days, said the Lehman losses forced the net value of its assets below $1 a share, known as breaking the buck. Reserve Primary, the oldest money fund in the nation, fell to 97 cents a share and redemptions were suspended for as long as seven days.
"
I'm not sure what the implications of this are apart from the obvious "money market accounts not so safe". :-(
There's risk everywhere in the system, and increasingly everyday people are going to get hurt by this even more. And yet the market rallied big today. I think I'm going crazy... :-(
"Reserve Primary Fund became the first money-market fund in 14 years to expose investors to losses after writing off $785 million of debt issued by bankrupt Lehman Brothers Holdings Inc.
The fund, whose assets plunged more than 60 percent to $23 billion in the past two days, said the Lehman losses forced the net value of its assets below $1 a share, known as breaking the buck. Reserve Primary, the oldest money fund in the nation, fell to 97 cents a share and redemptions were suspended for as long as seven days.
"
I'm not sure what the implications of this are apart from the obvious "money market accounts not so safe". :-(
There's risk everywhere in the system, and increasingly everyday people are going to get hurt by this even more. And yet the market rallied big today. I think I'm going crazy... :-(