Yesterday it was JPMorgan's money-market funds [6] adjusting to their fiduciary duty and following Fidelity's lead [7] in getting out of any and all short-term non-risk-free Treasury Bills. Today, another massive money-market fund provider sells it all...
- *BLK'S MONEY FUNDS HAVE NO ASSETS IN TREASURIES TIED TO DEFAULT
- *BLACKROCK SAYS `ZERO EXPOSURE' TO DEBT MATURING IN LATE OCT.
- *BLACKROCK SAYS NO HOLDINGS IN TREASURIES MATURING IN EARLY NOV.
It seems remarkable that all three of these funds would ignore the advice of blowhard bloggers who suggested this was nothing. But, as Barack Obama himself said yesterday, "Ultimately, what matters is: What do the people who are buying Treasury bills think?" It seems only the Fed (and PIMCO) is left.
“We continue to take prudent actions in preparation for all potential outcomes, despite our belief that Congress and the President will likely act to prevent a U.S. default,” Tara McDonnell, a spokeswoman for the New York-based company, said today in an e-mailed statement.
Ironic really considering Larry Fink's comments from earlier:
- *FINK DOESN'T SEE U.S. DEFAULT HAPPENING