Where to Park Cash For Now?

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Profette,

You're kidding? Someone actually hid it in the freezer?....hahaha. I have to figure out another place then.

Seriously, after selling all my mutual funds. I just don't know where to park my money now. I can buy CDs but they're really not insured. And money market might also be affected by this credit crunch. I thought of wiring the proceeds to my local bank. But is my local bank immune from this mess? I certain can't just wire transfer to my local bank and carry all the cash home. Hahaha!
 
Not only did they find it in his freezer, he had wrapped blocks of it in foil and placed the foil wrapped bundles inside frozen dinner boxes.

{Insert obligatory joke about cold hard cash}
 
The very existence of this thread is troubling. I cannot recall a time ever in my adult life where people were trying to figure out a safe way to store their wealth. People always look for "safe havens" for when they exit the stock market, but this is very different. We're not trusting our money market accounts and CD's.

Treasury bills are the way to go, IMHO. Apparently I'm not the only one who feels that way... The short-end of the yield curve has a freakish inversion while everyone hunkers down. They were yielding in the 3's earlier today.
 
trooper - And it may get worse. Silver is down 10%. Until the hedgies and the weak hands are out, everything is vulnerable. Except cash.
 
Article inre my earlier comment.

The yield on the three-month Treasury bill fell 0.72 percentage point today to 3.38 percent, the lowest since July 2005 and the biggest drop in yield since the stock market crashed on Oct. 20, 1987.

I think we're watching history in the making.
 
Awgee,

Honestly, I think it's too late for the Fed to do anything. Lets say they did lower rates. What use of that now? I mean the financial sectors are in such a mess. It's just too late.
 
Reason - I have no idea what effect lowering interest rates or any other manner of injecting liquidity would have on the credit markets, the yen carry trade, or the equity and bond markets. But I do know what effect it will have on precious metals.

The real question is: What will the fed do? Is credit dissappearing? Is the money supply decreasing? What will the fed do?

Don't over think it. If you don't know, and most folks don't, look into the fed's history and see what the fed does.

You don't have to figure out everything. Just enough to make money.
 
It's weird though, the banks and the savings/loan people are doing great today.

Bank index is up 1.73% and the Saving/Loan index is up almost 3%

Good companies like Boeing and Cisco are getting hammered.

Market thinks that people are going to put money into banks?
 
This is amusing in an ironic sort of way. The Bloomberg home page is filled with doom. Stocks plunge, run on treasuries, Peru quake kills 337, Philly mfg index stalls, First Magnus having trouble funding, Lear getting hammered by poor auto sales... Then a bright and sunny article at the bottom about the new C-class taking on the BMW 3-series.

I guess life's not so bad after all.
 
...unless you used a HELOC to impress your friends with the new BMW 5-series. It was the worst performer in a new side-impact crash tests of luxury sedans by the insurance industry.
 
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