B4 The Bell, Moonday, June 28

[brian4]

MH- Condi would not use a black marker it would be yellow crayon all the way. Watching the news clip of that Goof Bremer wearing a blue suit and tie with Combat Boots was all I could take. He will now go back to his old job as a Doorman at the Waldorf!

[rog]

TGT: sales well below plan

 

that makes a trifecta GM, WMT, TGT

 

consumers are slowing down

[DrStool]

Check me on this, but I believe a bank money market account is not the same as a money market fund. A bank money market account is a bank account with an interest rate that floats like a money market fund. I believe the principle is fully insured to 100,000. There are money market funds which invest only in T bills. Probably the best bet here.

[stained jeans]

MH, End -- good to see ya postin' agin'

 

I still like an 1151 termination point but if the green line is broken, 1146 will do.

[The End]

MH, End -- good to see ya postin' agin'

 

I still like an 1151 termination point but if the green line is broken, 1146 will do.

Great chart Stained. Tanks.

[Drano]

Check me on this, but I believe a bank money market account is not the same as a money market fund. A bank money market account is a bank account with an interest rate that floats like a money market fund. I believe the principle is fully insured to 100,000. There are money market funds which invest only in T bills. Probably the best bet here.

Sorry for the confusion. I should have recounted exactly what I was told:

 

You can have your cash at Waterhouse swept into the money market fund of your choice. They have several, with varying interest rates, none of which are much of anything.

 

However, if you set up an account with Waterhouse National Bank, you can have your dough swept into an FDIC insured money market fund. (This is the minor extra step you have to take in addition to having the Waterhouse brokerage account. They give you a checkbook, too.)

 

I will check tomorrow as to exactly WHAT the FDIC insurance covers. Does it guarantee that you're going to get your principal back if the money market fund has invested in, say, FNM paper? or does it just guarantee that you'll get whatever the net asset value of that fund is if, for instance, FNM defaults on their paper and Waterhouse also goes bankrupt? (and your NAV is, for instance, zero, so you still get nothing)

 

I would have asked these questions, had I been connected by phone to a fluent speaker of English. However, it certainly sounded (from the poor phone connection and heavy accent of the speaker) that I was speaking to someone in India, who had a lot of trouble answering any of my questions.

 

Further report tomorrow, after I find out.

[traderfromhell]

Check me on this, but I believe a bank money market account is not the same as a money market fund. A bank money market account is a bank account with an interest rate that floats like a money market fund. I believe the principle is fully insured to 100,000. There are money market funds which invest only in T bills. Probably the best bet here.

Doc at these rates if it ain't in gold or silver I'd just as soon keep it under the mattress.

[Pee Brain]

fdic insured pays up to $100,000 on an acc't; max encompasses int & principal - no?

[Pee Brain]

I just was informed that I am going to a Dead concert July 28th in Cleveland. Yeah. I love the summer.

 

is that where they buried gerry?

[Guest]

Looks like the matrix is going to be jamming the futures all night to repair any damage before morning. All is well when you can print up whatever you need.

[Hiding Bear]

fdic insured pays up to $100,000 on an acc't; max encompasses int & principal - no?

Yes!

 

The FDIC in recent years has made no exceptions to its $100,000 coverage rule - which by the way includes interest. Therefore it would be prudent not to have more than $100,000 less the amount of accrued interest in any one bank (i.e. $95,000 or even less with some types of long term CDs).

 

It is hell to set up accounts, either individual or joint, in 4 different banks just to

stay within the FDIC insured limits.

 

FDIC web site has firmly stated that the insured-limits would not be raised and the

congress too when the subject was raised.

 

from Hunter 65 and myself June 13

[Hiding Bear]

Looks like the matrix is going to be jamming the futures all night to repair any damage before morning. All is well when you can print up whatever you need.

Damage control could continue all week, but most likely tommorow with unexpected moves tailing off as the week progresses.

[No Einstein]

Michael Moore has put the news industry on notice , America is willing to pay for the truth. look for more real reporting, this thing is embarrassing them

[Hiding Bear]

MH, End -- good to see ya postin' agin'

 

I still like an 1151 termination point but if the green line is broken, 1146 will do.

 

Draino - I have a Waterhouse stock account for my cubs, but I am not familiar with the bank you talk about. I think what they are doing is placing your funds in a money market bank account. Therefore it would be covered under FDIC limitations. MMFs are not guaranteed, except SIPIC basically guarantees you will recover your investments worth up to $500,000 in the event of a brokerage failure.

Great job Stain!. Also welcome back TE and MH.

 

Brian4 may be right but I'd like to wait for a confirmation of a trend change before jumping back to the short side.

[Drano]

fdic insured pays up to $100,000 on an acc't; max encompasses int & principal - no?

Yes!

 

The FDIC in recent years has made no exceptions to its $100,000 coverage rule - which by the way includes interest. Therefore it would be prudent not to have more than $100,000 less the amount of accrued interest in any one bank (i.e. $95,000 or even less with some types of long term CDs).

 

It is hell to set up accounts, either individual or joint, in 4 different banks just to stay within the FDIC insured limits.

 

FDIC web site has firmly stated that the insured-limits would not be raised and the congress too when the subject was raised.

 

from Hunter 65 and myself June 13

That is true of BANKS. However, the question is:

 

Brokerage money market funds have a net asset value which the funds try to peg at 1.00 per share. However, THIS IS NOT GUARANTEED. So the question is, if you have your nice brokerage account with, for example, 50,000 shares of a money market fund -- which you thought was $50,000 -- but suddenly you discover that the money market fund was entirely in FNM paper, and now FNM is a goner and all paper is worthless -- the brokerage has NO obligation to pay you $1.00 per share. They state this explicitly in their disclaimer. (Not the FNM part, obviously! just that they will try to keep the NAV at a buck but can't guarantee it -- and that it's NOT FDIC insured.)

 

However, if it is an FDIC insured money market account in Waterhouse National Bank, are they guaranteeing you that you get your buck a share (all your principal and interest) -- or are they just guaranteeing you that the brokerage can't hose you out of whatever the net asset value per share may be? (in other words, they still invested in FNM paper, so can the net asset value of one of these FDIC insured accounts still be LESS than a buck a share?)