[mattduke]

Third, in addition to imposing additional risk limitations and improving disclosures, these rules will take important initial steps toward making money market funds less vulnerable to “runs” — and seek to limit the contagion effect of any run that may occur. Such broad-based or large-scale requests for redemptions can overwhelm a money market fund and challenge its ability to return proceeds at the anticipated $1.00 net asset value.

The new rules will permit the board of a money market fund to halt redemptions if the fund "breaks the buck." The halting of redemptions will stem the motivation for runs. It also will eliminate the need for a failing fund to sell securities into a potentially de-stabilized market and further drive down prices, which could impact other money market funds holding the same securities. Our rules also will require money market funds to be able to process transactions at prices other than $1.00. This will avoid unnecessary processing delays should a fund break the buck.

As the dollar crashes the government will do everything it can to ensure you take the full brunt of the hit. The time to get out is BEFORE the problems hit.
http://www.sec.gov/news/speech/2010/spc ... ls-mmf.htm

[Tanada]

Maybe it is just me but it seems like the new rules will cause people to put less money into funds in the first place, or move there funds to other instruments that are not subject to the same rules. It will also incentivize getting your money out first if you think there is weakness in the market because only the first few in line will get to make their withdrawals, the rest will be told sorry.

[pablonite]

That is weird:

Good Morning.

This is an open meeting of the U.S. Securities & Exchange Commission on January 27, 2010.

Today, we will consider two recommendations.

First, we will consider whether to adopt new rules to strengthen the resiliency of money market funds.

And second, we will consider whether to provide interpretive guidance to public companies regarding the Commission’s existing disclosure rules, and how to apply them in the context of changing business or legislative events that relate to the issue of climate change.

So "resiliency" means enabling a board of directors to halt a "run" on their own market fund that could have been built out of dogshiite and sold as gold?

I don't even want to know why they had to throw "climate change" in there but I would guess it would have something to do with the very dynamic "carbon" markets". Are they even real? The billions floating around in them are!

I think in other words, this is legalese for "the builders of markets get to pull out first and then immediately put a "halt" to any subsequent "run" on that market."?

I agree, looks like a big red flag on whatever funds they are talking about.

[pablonite]

The second wave of mortgage defaults and foreclosures will hit the economy this year
http://globalresearch.ca/index.php?context=va&aid=17451

As we have been forecasting for the last two years, the second wave of mortgage defaults and foreclosures will hit the economy this year. Not only will we have failure in prime loans and option-arm loans, but we are faced with a new crop of subprime and ALT-A loans put into motion by Fannie Mae, Freddie Mac, Ginnie Mae and FHA. In addition, we find it of great interest that the FHA is changing the rules to purchase homes. That, of course, means less homes will be purchased.

The incidence of unemployment may be lessening, but it isn’t going away. Those of you who keep your ear to the ground know that real unemployment is 22.5% and in cities like Detroit it is somewhere near 45 to 50 percent. This is the result of free trade, globalization, offshoring and outsourcing...

The banks and hybrid brokerage-banks are all involved in flash trading, which is more appropriately known as front running. They continue to engage in naked shorting and the SEC stands by and does nothing. This gambling and criminal activity is funded by the Fed via very cheap loans. Then there is their business and relationship with totally unregulated hedge funds. The money center legacy banks are growing not shrinking and now control more than 70 percent of global banking assets. You add this all up and you find you have a financial oligarchy that is gaining in dominance not shrinking, as Wall Street would have you believe. While this transpires our President and Congress have doubled the federal deficit. The previous two administrations and the current one have taken debt from almost nothing to $12.3 trillion, which will be $14.3 trillion by December. Even the Fed’s debt has risen to $2.2 trillion having engorged themselves on bonds from Agencies, Treasuries and with toxic waste. The Fed is lying about their holdings; they purchased 80 percent of last year’s Treasury debt. What they did was stuff billions in purchases under other investors – household, which is ludicrous.

And the fed is going to turn the tap off soon?

http://jessescrossroadscafe.blogspot.co ... ng-us.html

Once the Fed’s agency purchases stop, this private sector portfolio shift will end, removing a major source of demand in the Treasury market.

As the chart shows, since the start of 2009 the Fed has bought or financed the entire increase in Treasury issuance. As Fed purchases slow and Treasury issuance continues at a high level, interest rates will have to move up to attract new buyers."

It's all a done deal, it is an engineered perpetual debt machine that has been exported all over the world using the fractional reserve debt based monetary system that greases the wheels of "capitalism". That was the easy part, convincing the world they will be living in perpetual debt and poverty without revolution is the hard part.

Hell, they might even let them have their revolution, maybe even fund it from their many overseas resort homes and call it "the banking reform revolution" and pull the curtains on a mountain of gold the size of Mount Kilimanjaro and say "We are going to base our new world currency on this stuff along with all your carbon..."