Tuesday, September 23, 2008

A Finance Guy Checks In (He's Been Busy)

I always respected Billmon at Daily Kos, so he's worth reading, I think.
When I switched my measly cash into treasury money market, which is insured, last year after reading up on it enough to be worried, I told my friends with scads more money what I had done and why. They were unconcerned. "It's in money markets," they said, "I'm not worried."
Some mistakes look even dumber in hindsight than they did at the time: Like the creation of a parallel depository banking system (a.k.a. the money market mutual fund industry) without any sort of insurance fund (either public or private) and only cursory regulation -- which is roughly like building a 150-story skyscraper with one fire alarm and no sprinklers.

No comments:

Post a Comment