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| Subject: money market funds A Money Market Fund (or Money Market Mutual Fund) is an open ended mutual fund that invests in short term debt securities. Regulated under the Investment Company Act of 1940, Money Market funds are important providers of liquidity to financial intermediaries. In 1971, Bruce R. Bent established the first money market fund in the U.S. The Reserve Fund was offered to investors who were interested in preserving their cash and earning a small rate of return. Watching the Fed By John Schroy, on July 21st, 2009 |  Leave a comment  Despite massive government spending programs, without a clear plan for financing the deficit, Ben Bernanke continues to promise low interest rates for an extended period. This suggests that Ben doesn’t understand that, even in inflation, there are ups and downs in employment and the business cycle. Low interest rate encourage the ‘Carry Trade’, not domestic employment. So, what is Ben’s ‘exit strategy’ that will avoid the inflation that is being set up by Obama’s spending? July 21st, 2009 | Print Article |  Email Article |  Topics: bank reserve requirements, Barack Obama, Ben Bernanke, central bank, Jimmy Carter, money market funds | Category: Inflation | Leave a comment |  Short urlThe coming inflation By John Schroy, on June 25th, 2009 | One comment  Money market funds, like banks, receive money from depositors repayable on demand, which they invest in debt instruments. Their spreads are far less than those of commercial banks and they have no reserve requirements. The difference between a MMF and a commercial bank is that one issues equities while the other issues debt callable on demand. When inflation hits, short-term interest rates with MMFs will be the first to rise because of their razor-thin effective spreads. June 25th, 2009 | Print Article | Email Article | Topics: bank reserve requirements, Barack Obama, Harry Reid, Jimmy Carter, money market funds, Nancy Pelosi, S&L Crisis | Category: Inflation | One comment | Short urlQ1 2006 By John Schroy, on June 20th, 2006 | Leave a comment  Despite worries about rising interest rates engineered by the Federal Reserve Bank, demand for corporate and foreign bonds in the US market continued firm through Q1 2006. The principal bond buyers were foreign investors, life insurance companies, and money market funds. Even with firm demand, corporate bond prices weakened in Q1 2006 because a significant increases in new offerings by corporations seeking to finance stock buybacks. June 20th, 2006 | Print Article | Email Article | Topics: Bonds, Federal Reserve Bank, insurance company, Interest Rates, money market funds, Stock Buybacks | Category: US Bonds | Leave a comment | Short urlFeatured articles on inside pages
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