A question for investment gurus: Is this good or bad?
LiberalHeart
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Thu Dec-18-08 12:13 AM
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A question for investment gurus: Is this good or bad? |
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I received a mailing today from the company that manages my retirement annuity. It's an announcement that they're participating in the U.S Department of the Treasury's Temporary Guarantee Program for Money Market Funds. Is that supposed to give me peace of mind -- or is it a sign they expect to go broke?
The mailing says the fund provides coverage for up to $1 per share for the lesser of either the number of shares the investor held in the fund at the close of business on September 19, 2008 or the number of shares the investor held the date the per share value fell below $0.005.
Is this connected to the bailout?
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Demobrat
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Thu Dec-18-08 12:15 AM
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1. It's the equivalent of FDIC insurance |
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Edited on Thu Dec-18-08 12:18 AM by Demobrat
for money market funds, and yes it's supposed to give you peace of mind. It means that if your MMF "breaks the buck" (goes below $1 per share in value) the fed will bail you out.
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LiberalHeart
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Thu Dec-18-08 12:17 AM
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