Julio:

> Sabri wrote:

>> What I hear is that the next shoe will be money market funds!

> Hedge funds?  Tomorrow (when the new SEC short-selling rules go into effect)?

It seems that money market funds are going down first. They call it
"significant redemption pressure" although what they really mean is
"run on banks/money market funds." Putnam in Boston closed its $15
billion money market fund" last night but we just heard it an hour
ago. What is going on in the hedge funds arena is not out in the open
yet! The rumour is that they are buying protection thru credit default
swaps on debt and then shorting the corresponding stock to force the
issuer to default. If this is what really happening, then most likely
they are digging their own grave. Also, it appears that there is "run
on hedge funds" that is going on, too, but it is not out in the open
yet, either. I guess, hedge funds will come after the money market
funds. By the way, GMAC was also mentioned together with money market
funds.

Best,
Sabri
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