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One of the things I read awhile back was many of the biggest mutual funds lost BIIIIG time in one week. They owned several companies like TYCO, WCOM,AOL, and others that lost 20%, 30%, 50%, all in one week. Several trillion was gone at once, and it was the beginning of mutual fund withdrawals, so they were forced to sell to pay the people. Then they went into dirivitives to try and salvage their positions. I haven't heard anything since, but this was some Fiedelity and Vangaurd funds. I have heard that some funds will close but they gave no names. I hope people with these funds are keeping up with their prospectus'. They may be under water and can't pay if there is a run. Maybe with the recovery, there has been some shifting to better stocks. It's like Cigna was the other day. You can't loose $28 in one day on a core holding and make that up with your other stocks.

One of the things I read awhile back was many of the biggest mutual funds lost BIIIIG time in one week

Yes, back in July, many mutual funds took a big hit both to their portfolios and redemptions. Initially, a couple of novice spokesmen for some funds appeared on CNBC and expressed concern about the forced selling into a falling market. That lasted about two days and then the mutual fund industry slammed the information door shut, put the novices in a back office and sent out the old hypsters to say that everything was just fine and how now was a good time to buy, buy, buy.

Ever since then, there has been little reported on the health of the mutual fund industry although I did hear that as many as 500 funds have either been liquidated or merged into other funds this year. John Bogel of Vanguard fame commented that he thought that the number of funds would be cut in half. That cause quite a stir for a couple of days, and then that story was buried.

Don't expect much honesty and truth coming from the financial management business. They are losing investor money at a record clip and are charging management fees to do it. What can they say?

Richard W.