Re: It’s Official, SEC approves freezing of Money Market …

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  • Wed, Jan 27, 2010 - 10:31pm

    #11
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: It’s Official, SEC approves freezing of Money Market …

IMO it’s troubling, but like memorrison I don’t see this as really making a difference in the grand scheme of things.  TPTB would pull this stunt with or without the new rule if they felt it was in their own interest.  “It’s easier to ask forgiveness rather than permission” seems to be the order of the day in all facets of government and finance, so they’d just go ahead and do it and perform damage-control and attempt to justify their actions later.  All this does is make it a tad more convenient for them.  There is no practical difference in having an official right that would be ignored vs. not having that right in the first place.

But what I do read from this is that if they bothered to put such a rule in place (when they probably could get away with freezing funds anyway), it means the likelihood of such a future action being necessary (from their perspective at least) is considerably higher than normal.  I’m going to have to talk with my parents and make sure they don’t have too much cash sitting in money markets.

– Nickbert