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To: razorback-bert

>>Remember, we are talking about money market money, which is considered cash by many, so it needs to be parked somewhere, but where?<<

For a very short time, there were a lot of lumpy mattresses.

And finally, light is shed on the phrase “Go to the mattresses.”


162 posted on 02/12/2009 1:24:31 PM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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To: RobRoy

Actually, you could see what they did in the market: they bought short-term T-bills. They bought them so hard, they drove the yields down to zero, and for a half day or so in October, the yields went negative.

That’s panic, that’s fear. When people who need a place to park millions don’t trust “cash equivalents” and they want the *explicit* “full faith and credit of the US Treasury” - with very high liquidity, they buy US T-bills or US Treasuries.


164 posted on 02/12/2009 1:31:28 PM PST by NVDave
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