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The "Gates" Are Closing: SEC Votes Through Money Market Reform
It was nearly five years ago when Zero Hedge first wrote: "This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied" in which we predicted as part of the ongoing herding of investors away from every other asset class and into stocks, regulation will be implemented to enforce that "money market fund managers will have the option to 'suspend redemptions to allow for the orderly liquidation of fund assets" or in other words implement redemption "gates." The logic: spook participants in the $2.6 trillion money market industry with the prospect of being gated (i.e., having no access to ones funds) and force them to reallocate funds elsewhere.
Moments ago the gates arrived, when following a close 3-2 vote (with republican commissioner Piwowar and democrat Stein dissenting), the SEC adopted new rules designed to curb the risk of investor runs on money market funds, capping the end of a years-long heated debate between regulators and the industry dating to the financial crisis according to Reuters.
Among the changes, funds will have to switch to a floating share price instead of the current $1/share (hence the term breaking the buck). But the key part: "The SEC's rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption "gates" and fees in times of market stress."
And therein lies the rub, because the very presence of the "gate" effect will be enough to send money market investors rushing out (as they are all sophisticated enough to know that this fake, rigged market is a house of cards just waiting to come down) and into other asset classes.
Of course, it is the desire of the SEC, the Fed and the US Treasury that the one asset class picked as an alternative to money markets is equities: considering that the entire rally since 2009 has been on the back of the Fed and the primary dealers, with virtually none retail participation, the SEC decided it was about time to herd the "retail investor" out of the ZIRP "danger" of money markets and into the "safety" of an all time higher stock market where even Janet Yellen admits there is at least a biotech and a social media stock bubble.
Below are some of the concerns voice by one of the objectors, Kara Stein, via Bloomberg which incidentally are all spot on:
Redemption gates are the “wrong tool to address risk,” said SEC Commissioner Kara Stein during open meeting.
Fear incentives will result in “greater chance of fire sales in times of stress and spread panic to other parts of the financial system while denying investors and issuers access to capital”
- “Money market funds are only one part of wholesale funding markets that need to be strengthened”
- In the event the gate imposed increases, investors have a “strong incentive to redeem ahead of others”
- While a gate may be good for one fund, “it can be very damaging to the financial system as a whole”
- When the gate for a fund is used, it doesn’t mean the “impact on wholesale funding markets will be prevented”
She is spot on. But forget about our opinion, or even that of the SEC, because while on the surface this now enacted proposal to establish withdrawal limits is spun as benign, it was the Fed itself who warned in April of 2014 that "the possibility of suspending convertibility, including the imposition of gates or fees for redemptions, can create runs that would not otherwise occur... Rules that provide intermediaries, such as MMFs, the ability to restrict redemptions when liquidity falls short may threaten financial stability by setting up the possibility of preemptive runs."
Clearly, everyone understand that the only purpose behind implementing "gates" is to redirect the herd. And with some $2.6 trillion in assets, money markets can serve as a convenient source of "forced buying" now that QE is tapering if only for the time being. The only question is whether the herd will agree to this latest massive behavioral experiment by the Fed, and allocate their funds to a stock market which is now trading at a higher P/E multiple than during the last market peak.
And should this particular exercise in inflating stock bubbles fail, then gating bond funds, another "reform" which as we reported last month is in the works, should certainly force equities to unseen bubble proportions.
On the other hand, a blow off top in which the S&P rises by a few hundred points in weeks if not days may be just what this market needs for its final catharsis before everyone realizes just how insane centrally-planned things have gotten, and the long-delayed reset can finally take place.
* * *
For those curious, here is the section in Kara Stein's objection remarks dealing with gating:
... while the rule contains improvements, I believe it has a significant shortcoming – redemption gates. I agree with the staff that a floating net asset value, even when combined with these other improvements and the 2010 amendments, is not a panacea. Money market funds remain vulnerable to runs because investors will still have an incentive to redeem in a crisis.
However, after careful study, I am concerned that gates are the wrong tool to address this risk. As the chance that a gate will be imposed increases, investors will have a strong incentive to rush to redeem ahead of others to avoid the uncertainty of losing access to their capital. More importantly, a run in one fund could incite a system-wide run because investors in other funds likely will fear that they also will impose gates. I share the concerns of many commenters and economists that while a gate may be good for one fund because it stops a run in that fund, it could be very damaging to the financial system as a whole.
Even further, while a run by investors in one fund may be halted when the gate for that fund is used, that does not mean the impact on the wholesale funding markets will stop. To the contrary, a fund that drops a gate likely would need to build liquidity to meet redemption requests when the gate is lifted. This means the fund is likely to stop re-investing maturing securities during the gated period, or will invest primarily in government securities, thereby cutting off funding to issuers. This effect could be amplified by investors, who likely will redeem assets from other funds if one fund imposes a gate. And if investors are not able to redeem before the gate comes down, they will be harmed as they are deprived of access to their capital. Ultimately, this contagion could freeze the wholesale funding markets in much the same way as occurred during the recent financial crisis.
I appreciate that the rule seeks to mitigate some of these concerns by allowing the fund’s board to impose gates at a higher liquid assets threshold than was proposed, by shortening the length of the gate, and by requiring daily disclosure of a fund’s level of liquid assets. However, I do not believe that these changes adequately address the risk of destabilizing pre-emptive runs for the following reasons.
First, adding discretion that makes it easier for a fund to impose a gate could actually increase an investor’s incentive to redeem because it makes the use of a gate more likely. This could be especially problematic in a crisis, when an investor’s preference to avoid uncertainty could be magnified. Second, shortening the gating period to ten business days may only marginally decrease the incentive to redeem since even a ten business day gate is significant, particularly for corporate treasurers or other investors seeking to make payroll or meet other daily demands. Third, while disclosure could help, it also could have the opposite effect by highlighting that a fund could be at or approaching a threshold that would allow it to impose a gate.
I also am not sufficiently persuaded by the argument that many investors with a low tolerance for gates will seek alternative financial products that are better aligned with their risk-return preferences. While this could happen, it seems just as likely that those same investors will continue to invest in money market funds because they believe they will be able to redeem before a gate is imposed, or that sponsor support will prevent the gate from ever being used. While the rule requires disclosure of sponsor support, it unfortunately does little to address the moral hazard that is created by it.
In the end, these are difficult issues with uncertain answers. Ultimately, despite the rule’s efforts to mitigate the risks posed by gates, I believe the incentives to avoid them will remain powerful. I fear these incentives may result in a greater chance of fire sales during times of stress, and a spread of the panic to other parts of our financial system, while also denying both investors and issuers access to capital. I am, therefore, in the unfortunate position of not being able to support the rule that the staff recommends adopting today, despite some of its well-considered and thoughtful components.
Whatever the result today, money market funds are only one part of the wholesale funding markets that needs to be strengthened. We and our fellow regulators need to take additional steps to improve the transparency and resiliency of these markets. I look forward to working with the staff, my fellow Commissioners, and my fellow regulators on this more comprehensive and necessary project as we move ahead.
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Learn their habits.
+1 Demonic.
This was the solution after 6 years of the financial crisis. This is the only that addresses what actually happened: a bank run in money market funds. The solution: lock the doors of a burning building.
It's also the worst of both worlds. It's breaking the buck AND either not allowing you out OR giving you a penalty on top of the new share price.
I'll take the gold/silver price volatility over this bullshit any day.
"Clearly, everyone understand that the only purpose behind implementing "gates" is to redirect the herd. And with some $2.6 trillion in assets, money markets can serve as a convenient source of "forced buying" now that QE is tapering if only for the time being."
Why would i want to buy? Getting out of the financial system altogether would be the thing to do.
The market has crashed twice, already.
Isn't it ironic, a Chevy may actually be a better investment than a MM....
Nothing can go wrong when you assume perpetual growth in a finite, friction/drag laden system itself beholden to the laws of thermodynamics and the PEter Principle.
Also - you're never fully dressed...without a smile.
Who's into Black Annie, eh? I'm all for the reboot - there's always some fucking assholes, of course...
http://www.theguardian.com/film/shortcuts/2014/mar/09/annie-remale-casti...
cute kid.
poor Aileen Quinn, the original, was last in a movie with Mario van Peebles, for fuck's sake.
she's only 5 feet tall. getting a little long in the tooth and all, but pretty damn cute.
Got nowhere to run to, baby
Nowhere to hide...
...except bitcoins
be right and sit tight
What's this "lower the gates" language, are they *trying* to be confusing?
Is there really any money in money-market funds anymore? I thought the big brokerages houses closed their MM's when ZIRP started and the yield went to zero - mine did. I guess there are still some third-party and longer-maturity funds, but I'm not clear which ones maintained the $1 value, certainly not all long bond funds ever did ... um, did they?
And - the SEC? They're still in business? Who knew!
Sweeps are gone
Everyone's savings account is a MMF now
Since they don't need your savings in the financial system any more for loans in the Economy... I guess it is now "Fee For Service". You pay to keep your money in our bank. NIRP Plus Fees.
And checking, too. I think the only "real" savings account I now have is one at a credit union. Everything else is a MMF when you read the fine print.
This is more far-reaching than people think.
LOL
Gate or no gate, the Dream Dance will continue. Because we know that the Market knows best. We are all special. Nothing bad can ever happen.
The tooth fairy has our back if we just p(r)ay loud enough.
Don't anyone yell fire!
FIAT!
Oh GOD!!! Lemme out! Move mutherfucker, get out of my way...
LOL
The government has declared war on us.
Yeah. About 101 years ago.
Doh!
Doh!
Doh!
Check your brokerage sweep account. Make sure it is not a money market.
Bullish for real assets like gold and silver.
And bitcoin...
Is it just me, or is the water getting kinda warm in this pot?
"Global warming."
So I guess there's no point in jumping out of the pot then
It's just a relaxing sauna. Sit back and enjoy.
Like rape...
And here I thought I was the only one did. Well not the actual being-raped part, that sucks. But the setting-on-fire part in the middle was absolutely worth the rest.
Yo tits. They'd never get near you. Don't believe it, unless it amused you to toy with em!!
Or airport security checkpoints.
Legalized rape, like bankers do, and corportations, yes...
It is a rape culture...
Next they will chain the emergency exits at theatres because they don't want people to get trampled in the event of a fire and rush for the exits.
About closing the gates. Did you ever hear of FATCA ? Foreign asset managers must now report US clients so solve it by refusing US clients. Buy farm land now but not in the West!!
The Corzine rule: "Your money is your money unless it is in our safe keeping."
the club keeps stacking the deck in their favor
not much of a game
sounds about right - for them
Competition is a sin!
Get ready for "FULL FUCKING PSYCHO"
As I read the qualified and justified frustration this article has caused for ZH'ers - the case of the SEC stirring up shit - demoralization costs - makes me point to this: "As long as individual possession continues to be the norm, there is serious disvalue in the spectacle of any encroachment on possession by public authority which is suggestive of arbitrary exploitation of a few at the hands of the many. The mind moves from such a spectacle, by a short and easy mental transition, to the idea of that mutual disregard for the possessions of others which, by ingrained mental habit, in turn invokes the dire idea of social disintegration - with an attendant sensation of unease." (Michelman, Frank, 1967, p. 1211) - speaking to the Takings clause of the 5th Amendment - nor shall private property be taken for public use (public interest) without just compensation. In my opinion, the SEC's ambition of securing gates in an effort to "protect the financial system" read - public interest - contravenes the Takings clause to the 5th Amendment and thus constitutes a Taking for which compensation must be paid.
Yeah, I know. The Constitution is dead. I'm just pointing out the obvious that there really is no law anymore. So, there are no rights. Just the individual's permanent obligation to the state - no matter the cost. Frank's concerns are more relevant today than they ever were in 1967. Fuck I hate the government. Peace ZH.
@Pareto - + 1
One of the toughest thing for people to understand is that this isn't about 'politics' or 'economics' or 'law'. So, it's obvious that trying to form solutions while looking through those lenses will be frustrating & futile. This is about the actions of criminal psychopaths. (Of course, they're not looking out for yours or 'the country's best interest. They enjoy hurting people.) The best way look at this situation is probably through the lens of criminology.
I just called to close my MM fund account. Not much in there. The lady was quite helpfull. I explained about the gates being voted in. She asked me if I would like to transfer my money to a stock mutual fund. I declined and asked for a check. Just as the article states, they want that money in the stock market.
She was just anotherr of the clueless sheepole...
She was just anotherr of the clueless sheepole...
From the Fifth Amendment:
... nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
How are they planning to compensate me for taking away my property rights by NOT allowing me access to it?
We need a class action lawsuit on behalf of all investors against the SEC now...
are we twins? +1 Nice to see the 5th in its entireity. Beautiful thing.
Sorry... I did edit it for the pertinent piece here. But I reposted it below!
No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation
no apology necessary ej! Greater words never written or spoken. And before they are completely dead, it is a sweet thing - to see them - every once in a while. Kinda like the poem that really doesn't mean anything to anybody anymore as it once maybe did. cheers brother.
Cyprus comes to mind...
Planning on compensating you?? LOL! Surely you jest!
There is no more constitution, for the citizenry that is. The Constitution for the United States of America nefariously became the Constitution of the UNITED STATES, which is a corporate charter. We are run by a corporation with no regard for the their human resources, hence why our "constitutional rights" are constantly being infringed upon by government.
I've often wondered if there has ever been any challenges to the IRS and the confiscation of my property which I call labor. It is mine. I produce it. Why is the government able to take a percentage of this property WITHOUT just compensation?
I've searched for any cases which may have been tried and failed but found none.
Does anyone else have any idea why it would be constitutional to take a % of what I produce without compensation whatsoever?
The key with lawsuits with what's coming is not that you'll win, because shit will be so desperate that you very well might not. The key is to delay things long enough so that it doesn't matter whether or not you win the case outright that it doesn't matter. So there's to be a bail-in? Delay that shit for a month, or even a week. You may not win the case, but you'll win the war and make the case moot if you can simply delay things. I won't have standing on that, but somebody on here who does should have the skeleton of a lawsuit drafted, nearly ready to go just to delay things.
And if somebody here does what I suggest, have your food, ammo and water ready for the inevitable turmoil that will follow your actions.
Gate or no gate, it doesn't matter. When the run starts, you won't be able to get cash out of any system entity. Better to keep as little cash in the system as possible.
LOL, everything but PMs and I guess commodities are gated, are they not??? I mean, if I move from MM, I gotta go somewhere...my local bank, stocks, bonds, you name it. What, put my money in an office building REIT right now??? Are they not ALL inside one huge gate. Nowhere to run, nowhere to hide, my slimy reptilian friends!
Grand Banking Theft Auto
The Getaway Black Monday | Track 1
Get out of money markets for your cash.
I'm creating an alternative that allows you to spend gold as a currency with a debit card.
Goldbulliondebitcard.com
Though payments will be processed through bank networks, the gold will be held by a third party outside the banking system and never lent or hypothicated until spent.
If you create a log in I'll have your e-mail address to keep you updated as it is developed.
Don't let Winston Churchill find out your spamming again.
A gated product with 0% yield that can lose money? I guess we should look for mattress sales to skyrocket?
You like your MM account? You get to keep your money market account!
So what's next, NYSE doesn't have to maintain the dollar either?
So your TSLA is $500/share, but the dollars are discounted 75%?
the Reuters piece says this law doesnt go into effect for 2 years.
we have a window.
That window was nailed shut in 1913.
Granny Warren illegitimate faggot kids spent it all.
August 15, 2012, Ann Barnhardt:
I don’t even know what to say! What in the HELL IS GOING ON!?! – OTHER THAN THE ONLY EXPLANATION- WELCOME TO MARXIST FACSIM LADIES AND GENTLEMEN!!! It’s here! Welcome to hell!
Again, reiterating, you have got to get your money out of the financial system! Not just the futures markets, but the entire thing! Stocks, 401k, IRA- and so help me if one more person emails me or calls me and says well what about my 401k with such and such a firm? I’m going to just go and stick my hand through the wall! What is the matter with you people? What part of GET THE HELL OUT are you not understanding? What is so difficult about this? It’s the ENTIRE FINANCIAL SYSTEM!
GET YOUR MONEY OUT OR ELSE IT IS ALL GOING TO BE STOLEN FROM YOU! IT’S ALL A PONZI!!!
Anyone have practical suggestions after PMs, firearms, food? At some point the portfolio weightings of those can get high enough you'd want to balance out elsewhere. The only think I can think of is fuels storage, but that gets pretty impractical for large amounts.
Cananadian mining rights -
http://www.dwpv.com/~/media/Files/PDF/Investors-Guide-To-Mining-In-Canad...
http://www.photonics.com/EDU/Handbook.aspx?AID=25169
Solar
body armor, medical equipment and supplies, heating needs, water purification, camping equipment, barter items
One thing that most people take for granted is clean, safe drinking water. Spend the money and get the one item you will need the most if/when the shtf... a very good water filtration system. I have a Berkey "light" 2.75 gallon filter setup ... like $350, but how long would your family last if nothing comes out of the faucet anymore?
You could dump pond water into that thing and safely drink it.
+1 on the Berkey, been using it for years, travels well.
safe drinking water should be top of everyone's list.
the intention appears to be frack-the-resources, then water is the new Blue Gold.
not everyone has the *cough* resources to buy access to the Guarani Aquifer. . .
I think the Bush family has already staked a water claim in Uruguay
I have ten suggestions after PM's Firearms and food.
1) Water
2) Water
3) Water
4) Water
5) Water
6) Water
7) Water
8) Water
9) Water
and
10) Water
Got water?
Well starting with food you should probably keep a min of a 1 month supply per person to eat every day if the supply lines break.
Here is an example of kits that cover your daily caloric needs that can be stored for up 25 years.
http://www.thereadystore.com/food-storage/supply-size/1-6-month-supply?p=2
Water besides what is need to prepare these meals figure a good rule of thumb is to store at least enough water for 64 oz a day, YMMV depending activity level, weather, etc.
That you can in most cases set up rain catches to collect or just run your hose water now and store it.
Then you should probably filter and purify.
These are some good articles on how to naturally purify water.
http://www.practicalprimitive.com/skillofthemonth/charcoalfilter.html
http://www.instructables.com/id/How-to-purify-your-water/
http://www.offthegridnews.com/2013/08/12/how-to-build-a-bio-water-filter/
These are fairly simple systems to make.
Then to purify boil as needed or before storing but if you boil before storing you probably also want to sterilize your containers you are storing the purified water in by washing them with a bleach solution first.
hurry! get your 1's and 0's out of the digital cage before the gate shuts!
Is this not a variation of banks refusing to honour cash withdrawal instructions to customers or limiting the w/d amounts per day/week etc, as has happened in the UK in recent months in several major banks.
I personally had to threaten a major bank manager several months ago with flooding Facebook & Twitter with news that his bank had run out of money if he didn't hand over MY money. He eventually relented, but it still took me 2 meetings each of 2 hours to get it.
This whole gameplan appears intended to force savers/depositors/investors to keep their money inside the banking system, despite the known fact that it's rotten with fraud and corruption.
capital controls for the win
Our enemies are a homeless, traditionless race. From the days of Cromwell to the present they have been the disturbers of peace in the world… After what has happened in the last two years, my only wonder is that we consented to live for so long a time in association with such miscreants. Were it ever proposed to enter again into a Union with such a people, I could no more consent to do it than to trust myself in a den of thieves. Jefferson Davis
I have a question for some of you that seem to know what's going on (because I sure don't).
what about the poor, working classs and middle classes?
You know the people that live paycheck to paycheck and have little more than emergency savings if that. The ones with negative net worth -- left underwater by the housing bust and car loans that are worth more than the car. In short, the majority of adult americans. What about the people that can't go to the bank and withdraw 20k to make a pm purchase. What are they to do? I'm not even talking about the people who live on the public trough: retirees on SS, the disabled on SSI, welfare recipients, etc. I'm talking about gainfully employed and or abled bodied people who are unemployed. What about them? Are we just shit out of luck?
probably.
if you think anyone else gives a shit about anyone else in this universe you need to work a cash register at a gas station.
Cluelessminion
Mostly PMs are for retaining wealth, since they have none..well....
Anyone can scrape together enough money to buy some food/water and other necessities.
I did so by shunning the smart phone contracts and cable tv, and quitting smoking. These alone give me almost $400/month to prep.
Prioritize and stop making excuses
Best of Luck
Nobody's shit out of luck. Buy 2 extra cans of vegetables when you shop for groceries, next week, buy an extra package of TP, week after, a 5 Gallon jug of water, rinse and repeat. Stick them aside. You'll be amazed at how it adds up. Water, Food, Amenities (like coffee, vodka, salt, etc.) Prep! Have shit to barter with!
band together with those of like mind, educate those who have the awareness to listen, and form community.
it's not easy, but neither is survival if one doesn't have access to large sums of fiat today.
there are pockets of people thriving on less, and supporting each other both mentally and tangibly.
get straight on what you want, and get to looking!
best wishes.
I saw some snippets of a show on poverty in the US a few days ago. One woman with two kids bought shit food while she was worried about losing her house. But one of her kids mowed lawns (this requires gasoline and a lawn mower, which are costs,) and their lawn looked great. Instead of shit food, how much would she save by ripping up the lawn and growing food? The first year, not much, but after that, they could save a whole shitload. The people who live paycheck to paycheck are going to have to start thinking like this. They are going to have to understand that food does not come from a grocery store, but rather a farm.
Will the retail investor be subjected to the gates, too, or just the prime MM funds?
I have about 20k from an old postion I can get at. I cashed out of my equites postions a few money back and am sitting in a MM.
A bird in hand...?
And another thing. The belief here is that there is a shadowy group called "the 1 percent" that seems to be running things and that all of these financial happenings are related to their quest to take all of the wealth from the rest of us.
but why would they want to do that if they're already stinking rich? What else is going on that is making TPTB do these things? Is the "pie" getting smaller (i.e. decreasing resources, increasing population)? Is it changes in international balance of power (i.e. rich old americans vs emerging countries)? I understand we are coming toward additionals economic strife and people are trying to cover their bases but WHY? I'm not buying limitless greed, there *has* to be something else going on.
Clueless, good question. It is hard to believe why the super rich would still want more money? There must be some other reason which we minions are not aware of? Maybe they want us to invest in stock markets because they can sell to us high and buy more tangible things when the SHTF? I am just guessing here, but this is now on "my radar" to find an answer .
It's called de-population.
The 1% cunts want the whole fucking world to themselves and their broods.
TOO many people = START A WAR.
TOO many people = BRING ON SOME SORT OF DISEASE
People are crazy, the more power individuals have, the more fuckshitcrazy they are. Humans are fools, the goals of the TPTB are irrational, it's not a single thing which is going on, it's just a big fucking play. And you will be forced to choose your side and accept the rules.
Centralized state powered by taxes and fiat currencies and democracy must die.
They have an ongoing project called 'streamlining management'.
Right now it's a conflicting pile of nations, states, currencies, agendas, warring factions, rogue actors, terrorists etc. etc. that cause frictions and disruptions in the daily business of management.
The benevolent plan is to remove these individual actors and consolidate and collectivize them to a unified whole under a technocratic leadership of experts who are capable of proper management to emphasize efficiencies and prevent disruptions in supply chains.
Think of this project as a busy Mergers and Acquisitions Team working diligently to increase profitability of the corporate entity for the benefit of shareholders.
The catch is that you won't be a shareholder.
Ever.
Such a management scheme must have a strict hierarchy, I would be interested who the fuck are the top actors here. Rotschilds? Some other central bankers cabal?
clueless, this is an older video, about 15 min. - I really liked it when I first saw it, made sense on the inner levels before I started reading about the "outer" levels.
The Story of Your Enslavement
the "world" isn't as we were taught - wherever we were raised and schooled.
and it's not so much about "money" as it is about "power over" aka control.
Mr. Cluelessminion, think evil not greed and it may start making more sense. Also start listening to Alex Jones at www.infowars.com. He is trying to get to the truth although his critics say he is not going far enough. Do some Bible study which everyone and including myself need to do more.
" the 1 percent" that seems to be running things and that all of these financial happenings are related to their quest to take all of the wealth from the rest of us. But why would they want to do that if they're already stinking rich?I'm not buying limitless greed, there *has* to be something else going on."
Poor man wants to be rich,
Rich man wants to be King,
King ain't satisfied until he owns everything.
My core belief...
More power = more young wuss.
Simple concept. What hottie would sack out with an Icahn, Bernanke, Blankfein, Trump, Weiner, pick any, that worked for the transit authority? Zilch.
The long delayed reset sounds more and more like a pipe dream everyday. All the gov'ts and Fed's shit will reset.......the rest of us will have gaping assholes you could drive a fucking bus through.
Since the original link is from 5 yrs ago, maybe intelligent people should stop giving ZH or other Neocons/f**ing idiots ideas. Chuckles....what..da ya,, think? God,plz help everyone. Even the dumb ones that work for the govt because not all of them are bad, but just misdirected by their loving/caring/supportive govt.
Since the original link is from 5 yrs ago, maybe intelligent people should stop giving ZH or other Neocons/f**ing idiots ideas. Chuckles....what..da ya,, think? God,plz help everyone. Even the dumb ones that work for the govt because not all of them are bad, but just misdirected by their loving/caring/supportive govt.
I personally refuse to blame ZH for God's fuck ups.
"God,plz help everyone. Even the dumb ones that work for the govt because not all of them are bad, but just misdirected by their loving/caring/supportive govt [according to their perception]
Yes. Precisely. Sarc tags removed. Yes. Precisely.
And if you need a selfish reason for this (which if perfectly ok), when all benefit from that sort of help, you benefit as well.
[] Brackets mine
'loving/caring/supportive govt '
Just for clarity, what countries gov. are you refering to....... the Vatican?
I have $1.08 in my money market account. Should I take the penalty and withdraw it? Thanks for your input, in advance.
Cancel the account.
Bullets are the new U.S. currency.
Leave the $1.08 just to fuck with accounting.
I agree, I think it costs them.
I have heard of people overpaying their taxes by 1 penny just so they could confuse accounting.
Get your money out of the U.S. system.
BRICS is the future.
sounds like a sec sponsered m.f. global.
the market crashes, down come the gates on your money, and it's a bank asset, and your the debtor, so until jpm, and the other tbtf's lawyers are doing everything possible to scoop up all the cash.
with them being debtors of where your mm account is, who's going to be first to get paid, jonh doe, or dimon.
as you should know buy now there isn't enough cash in america to make the tbtf banks whole, your talking 2 trillion in mm accounts, and jpm's derivative exposure is what 50-60-70- trillion.
who you going to sue to get your money, the sec.?
am i mistaken?
FCC is a cunt.
The SEC has an insider trading slush fund that's available.
I haven't read all these comments - but - germane to the article - I am a US citizen living in Mexico. We visited our bank this afternoon because our 6 month CD (which had paid 3.55%) is coming due. The very nice lady explained that the new rate is 2.67% AND that she believes that due to the recent FATCA rules our investing would be limited to CDs and checking (0%). Because we are US citizens we are no longer allowed to invest in funds.
Last month - on the US side - we were told by Fidelity we could no longer own mutual funds - because we have a foreign mailing address.
I need to do some investigating.
Try this.
I have a CD from Wells that's paying 2.9% and that matures in September 2014. I asked how much I'd get to renew.
0.55% for a 48 month term.
Yes, a reset's coming
but it doesn't have anything to do with the dollar, inflation, interest rates, or BRICS.
Peak oil is here, friends, and as the production of oil diminishes, the global economy as we knew it and loved it is as gone as Betsy Ross sewing stars on the American flag.
"Peak oil isn't here" you say. "The government would have told us if it were."
Hahahahahahahah
Sorry to say I was wrong. I called the bank.
It isn't 0.55% for a 48 month term.
It's 0.55% for a FIFTY EIGHT (58) month term.
Apparently Wells Fargo is out of banking and now just trades stocks.
Or moving...
Dialogue from The Magnificent Seven Calvera (Eli Wallach): "Did you think those barricades would keep us out?" Chris (Yul Brynner): "They were built to keep you in."
Might cause pre-emptive runs? I'm closing my MMA now!
No, actually the gates are opening
On Sunday as a matter of fact
http://www.youtube.com/watch?v=QYmViPTndxw (7/20/2014 +7)
http://www.youtube.com/watch?v=1fkvjRD3N-U
http://www.youtube.com/watch?v=2Gl0hTnRhfs
3 Crescent Moons
https://upload.wikimedia.org/wikipedia/commons/thumb/c/c0/Biohazard_symb...
Last call for you fiat bottom bitches
Wait, what? There was a run on MMF's when the share price sank below a buck. So now there going to let the share price float. Does that mean it can't sink? Ok. That makes sense then.
What do we do when we need to cash-in silver and gold after the shitstorm has occured and there is a 90% tax on the value of any silver and gold that is cashed? If they can create the new Money Market regualtions what's to stop the same thing with metal?
If gold was taxed that way it would become a under the table add on to larger but discounted cash transactions for things like used cars, houses, land. Did you know that in Vietnam all land tracsactions by ordinary people are in gold? They have learned over generations to have no faith in fiat.
Black Market and they can fuck themselves I say.
If you do it legally you deserve the ass raping you'll get.
The problem is my homies' is that most have no idea! I'm glad I'm learning, but it don't much matter as I'm broke! Ha!
Broke is actually not such a bad place to be. If you have any money at all, the .01% are going to be sending their minions and thugs out to get it from you.
Sounds like bail-in to me
What do you do if you live somewhere like this?
Just transferred $150K from MM to checking account.
Phfft done in 20 ms...
Next step is out to cash and PM in the home safe.
Be careful of the new law that limits your cash withdrawals without you being labeled a terrorist. I believe yo may still take 9,000 without raising the eyes of an AML official, i am certified in the money laundering field and they say we must report.
Taking 9K repeatedly is structuring. He's better off pulling out 20K or whatever he wants and letting a report happen, since withdrawing cash is not illegal, but structuring is.
The way I understand it is that MMFs earning higher interest are the ones to float, NOT THOSE INVESTED ONLY IN GOV TREASURIES. Any assholes collectg more than .10% are being subsidized, and I understood it's targeted at these risky MMFs. We'll see...
TD Ameritrade assures me it's fund is FDIC/Treasuries only and under $250K is safest and I will be watching to see if NAV floats, I expect not.
Runs are a key, tragic component of our fiat money system, there is no amount of new votes/ reforms that can be made to get rid of them. The only solution is 100% reserves, with money that is an asset only and NOT simultaneously another's liability (e.g. Gold, Bitcoin, World Dollar). The fact is that as all money being held in banks (as debt - it is impossible to hold money there for safekeeping), there is a clear, obvious arbitrage opportunity for people to get the money out. That this will eventually happen is a logical certainty; it is only a question of whether it is sooner rather than later. As more and more people become aware of this, thanks in particular to Zero Hedge, we can only expect the collapse to come very soon indeed.
In a 100% reserve situation banks would only be able to lend their own capital. For depositors, commercial banks would become simple transfer agents for the central bank.
"And I said, 'Gentleman....and I use that word loosely...I will testify for you
I'm a gun for hire, I'm a saint, I'm a liar
Because there are no facts,there is no truth, just data to be manipulated
I can get you any result you like....what's it worth to ya?
Because there is no wrong, there is no right
And I sleep very well at night
No shame, no solution
No remorse, no retribution
Just people selling t-shirts
just opportunity to participate in this pathetic little circus
And winning, winning, winning' " - Don Henley
Garden of Allah
http://www.artistdirect.com/video/don-henley-garden-of-aalah/31851
Not many people know that song or it's meaning, but it is a great song and album. The lyrics are spot on. The fuckin asshole of Wall Street lives on. Satan only wishes he were as dirty as these scumbags.
Get out now! That's my advice. Once I get to my cost basis, only 2 cents to go, I am out of equiities.
Let the runs begin(down the back of Yellen's legs.)
http://www.wired.com/2014/06/potato-bean/?mbid=nl_wired_07232014
Respectfully disagree with the author of this item. Allowing MM funds to impose gates is a necessary measure, IMO, to make the point that a balance in a MM fund is not a demand deposit, and a MM fund is not a bank. It is a measure that will help the Fed to re-establish control over the money supply and make its other regulations more effective. It can be predicted that if a significant number of MM funds find it necessary to impose a gate, then there will certainly be some disorder in the markets for a few days. But it will simmer down, and folks will make a more measured decision about where to put their money.
Very true on all points. MM funds are not like traditional savings accounts. And yet they are marketed that way.
are you Yellen or Bernake?
That sounds like a load of horseshit. Who's going to simmer down when they can't get thier money. Hardy har har.
that is truely a fundamental shift...that really sucks we the people should not allow that we should tell everyone we know or see that this is not acceptable. as individuals we have very little power...but as many we can be heard.
What? You want me to...like...do stuff? Sorry bro. I'm busy. Knicks game is on and new releases on Netflix will follow. Good luck!
I think this is insane...if rates go up they empty our moneymarket funds!!!!!
It's about time. The American Financial Market's one-size-fits-all Ponzi scheme is kaput.
Now you can put your money in a Ponzi scheme you feel comfortable in. Savings accounts, money market funds, CDs, overnight repos -- we'll swindle you without you feeling you're in over your head.
Call your broker tomorrow and get into a Ponzi scheme that's right for you and the family.
Can't put limits on Bitcoin...
My checking account currently stands at $27. Looks like one more ounce is in the making soon.
The top 1% trading are getting paroniod over liquidity risk for their exits when fear gripped levergaged lemmings in a decline. So they have to be gated.
Kara Stein's statement at the end of the article above is excellent and it's too bad the other members can't see even the most obvious 'unintended consequences' that will be caused by this amateur move.
It reminds me of one of many great sets of lines in My Counsin Vinny - The Commissioner would be Judge Haller. Ms. Stein would by the famous Vincent LaGuardai Gambini:
Judge Chamberlain Haller: That is a lucid, intelligent, well thought-out objection.
Vinny Gambini: Thank you, Your Honor.
Judge Chamberlain Haller: [firm tone] Overruled.
Oh well, niice try Kara.