Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Economic collapse: we ain't seen nothing yet.

Some very rich people have eschewed money market funds for muni auction funds for the extra li'l bit of interest.

For half a century, the muni auctions have been as solid as money market funds.

But recently the market dried up. It's completely illiquid. Many billions of hard earned cash (in other words, money that's needed NOW) are sitting there and no one knows what to do to buy that paper so people can get their money back.

The sad part is that this doesn't only effect rich people with brokers who put them into this market in the first place (the brokers themselves never imagined this would happen since this market has been used as a safe haven for decades) but employees at many companies. Apparently, some in management have been parking payroll $$$ in these auctions. So people aren't getting paid.

How much is sitting there without buyers?

Could be $30-50 billion.

by Upstate NY on Tue Mar 25th, 2008 at 08:02:14 AM EST
Don't worry, Helicopter Ben will soon be printing your and my money to transfer to those wealthy fuckers using those impaired assets as "no look" collateral just like he's done in MBS/ABS markets so far.

The other market to go will be corporate debt - wouldn't want those private equity partners to lose any money, would we?

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Tue Mar 25th, 2008 at 08:28:23 AM EST
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