Money market fund Puns

The newest reforms proposed by SEC in a 3-2 vote will have a big impact on Money Market Funds and also the FED ON RRP.

Main takeaways if the reforms are finalized as proposed would be changing minimum liquid assets from 10% to 25% on an overnight basis and from 30% to 50% on a weekly basis.

FED ON RRP, Treasuries and Agencies all count towards liquid assets. Because of liquid assets being scarce the RRP market has exploded to over 1.7 trillion. With daily liquidity requirements from MMF going up 150% we should see RRP explode even further once implemented.

We moved my mom's 401k funds to a money market mutual fund back in 2019. While we didn't experience the Covid shock, however, we were left out from the Covid gains. Yes, we have learned our lesson especially Bogle's recommendation on asset allocation. Her account balance is close to $150k. Should we invest a portion of her assets in S&P 500 index fund or a target-date fund? She plans on taking retirement at 65 but we won't withdraw funds until the RMD is required. Long term plan is to move the 401k to a traditional IRA account. Any feedback is much appreciated!

Continued listings of political contributions from benefactors of the current unequal market structure to the Reps on the Financial Services Committee who voted AGAINST the Short Sale Transparency and Market Fairness Act. See part 1 for additional context: https://www.reddit.com/r/Superstonk/comments/ovz88q/campaign_contributions_to_the_representative_who/

Bryan Steil

https://preview.redd.it/hqlp3k8pzse71.png?width=484&format=png&auto=webp&s=27e6221a01b09d6b2080c8314b8231d9b8354084

William Timmons

https://preview.redd.it/mmqyinsyzse71.png?width=484&format=png&auto=webp&s=612359c139ae7b94904ebc22244a0aeb68016cd2

Van Taylor

https://preview.redd.it/0xknrk650te71.png?width=484&format=png&auto=webp&s=70192dd0c9a1b634a06532810e160002fb57c0f1

TLDR Summary;

• Every single one of the politicians who voted against the Short Sale Transparency and Market Fairness Act has received campaign contributions from some combination of hedge funds, big banks, "family offices" (another type of HF), or other investment group that benefits from the current market structure.
• Blackstone Group has their name all over these politicians.
• Bk2 Holdings is a weird shell "dark money" company linked to a billionaire HF manager and has their hand in a lot of these pools.
• UBS and Bank of America are other VERY COMMON names on these lists. Wells Fargo to a slightly lesser extent also.
• The DTCC and other clearinghouses are on some of these lists. Yes, that DTCC!!!!!
• Remember this is only the Reps on the Financial Services Committee who voted against this bill. The bill will at some point go to the House floor for a full vote. Call, email, tweet at, do everything to contact your Reps that may be on this list and request an answer to why they voted against a bill that goes against the best interests of their constituents. Demand answers!

edit 1: some of you have also pointed out that the OCC (options clearing corp) is also on this list, yikes!

edit 2: u/probablyannsaplant pointed out that you can use opensecrets.org to do the inverse and look at where, for example, Ken Griffin donated money. It really is a great tool for seeing the corruption that permeates the system.

edit 3: u/deal_ambitious made an excellent suggestion of cross referencing these institutions with those that

It’s criminal the hedges and the government need to be put in jail for fraud.

I live in an area with crazy housing prices and I don't think they're going down anytime soon. I used to have my nest egg in a high interest savings account for easy access once I found a house, but I've been looking for over a year and the situation just keeps getting worse. I decided to say frick it, and I dumped all my money in the S&P index with vanguard (barring a 6 month emergency fund). Pretty sure I'm just going to leave it there, but I'm having some second thoughts - what if the housing market never cools down and this is the lowest it'll get for awhile? Should I just bite the bullet and pay 600k for a 200k house?

Right now I'm slowly working through a master's program, I pay roughly 3k a year for tuition and supplies. After paying all my bills and having some fun I can still put 2k in savings every month, so I'm thinking of just starting my "house fund" from scratch and leave my investments alone. Keep looking at the market, keep going to open houses, etc.

My worry is that if the market crashes, my index fund will as well, and I won't have the funds to jump on an opportunity. How much money do you this is reasonable to keep on hand? For reference, I make 65k a year and the avg home in my area starts at 450k right now.

Edit: thank you all for your responses! While my friends are here and I don't want to move, I'm not completely married to this area (no kids). I'm going to begin researching homes in other states, along with the avg salaries and COL. Maybe I need to think outside the box. The conundrum of risk - whether to buy an overpriced house I can barely afford in hopes to build equity vs investing my nest egg and continuing to rent, is too difficult to navigate in my current situation. I'm at the top of my salary range imo, and once I complete my master's there's no guarantee of my salary increasing by a substantial amount (it's more for my own edification). So if I can't increase my salary, I need to decrease my expenses. I've lived here the majority of my life and don't want to leave, but maybe it'll be a new adventure!

I like many others have made the mistake of not allocating my deposits in my Roth IRA, and the money has just been sitting. Luckily I've caught wind of this only a couple years into contributing. I'm 23 years old, I've read the wiki and from what I gather, I should select the Vanguard Target Date Fund for the nearest year when I plan to retire. I see others recommend putting 100% into VOO or VFIAX. Honestly I'm just a little confused about what to do, and would just like some direction. Thank you.

Curious what some of you do with your reserves for your rental properties.

Thinking about how the more properties I get the more in cash reserves I'll have, which is obviously good and necessary, but us investors like to make our money work.

Having 5 properties with 3 months expenses sitting aside is a lot of missing opportunity cost.

So what do you do with it?

Toss it in a safe ETF like VTI?

Savings bank at .05% interest?

Some money market?

Thoughts?

How is this not perfectly clear?? This is the terminology we need to be using, because it's the only language politicians and mainstream media understand.

Edit: punctuation.

MoFo voted against new regulations on short selling transparency etc. Way too many Apes on Long Island. Big mistake Lee, BIG MISTAKE

KEEP HOLDING

Hey all, can someone clarify for me, if I keep a large amount in my MMF. Should I expect to profit over time or simply break even close to my initial amount?

My understanding was that it should hover in or about the initial amount only and never really result in a decent profit.

Thanks in advance!

I recently sold my first house to move to a new city. The turnaround for the move was very quick, so I will be renting for at least 6 months, but in the meantime I have a nice sum of money from the sale sitting in my checking account. I want to find a place to invest this money, but also keep it liquid in case I find a new home to buy in a few months. I was told a Money Market Fund would be a great place to put this cash so that it is earning some money as a low risk investment.

My question is how do I go about choosing a MMF? I have done some basic research, but I'm no financial expert and really don't know what I should be looking for. For example I'm looking at a fund recommended by Forbes that has an expense ratio of 0.11%, and the YTD yield is only 0.01%. Can someone please explain this in a more simple term, or suggest some good learning material for beginners?

Senator Toomey said after losing our money, we will lose our enthusiasm and leave the market. He has no idea. We love losses too! They think losses scare us.

He also said he doesn’t think that we shouldn’t restrict the market on either side. Retail or Broker. Good. This should give us the leeway to wreck more hedge funds.

I would think the hedge funds are going to push to eliminate us as a variable. We might have to start calling Congress if they start to move the wrong way on this.

The math seems pretty simple on this one

I use my Fidelity CMA as my main checking account, and I'd love to bring my savings over as well so that I have everything in one place. But all of the MMFs have about a .01% interest rate.

Do you guys think there's any chance they could ever go back up to 1%+?

I have a lot of money in a Vanguard Cash Reserves Federal Money Market Fund Admiral Shares account. I just sort of put it there, not being sure of what to do with it and being happy the return was better than a bank account.

The amount is now large enough that I am embarrassed to have it there with such a poor return.

I looked at the mix of things in my retirement funds. I already have a Roth IRA. I understand you can only contribute about $6,500 year, which is already being done.

Any advice on a savings/investment/retirement vehicle that is reasonably stable, reasonably liquid, and will give me a better return?

So now, let me see if I got this straight:

(a) The US Treasury makes as much Reverse Repo Treasury bonds available every day at 1:30pm

(b) Money Market Fund Managers with some cash on hand, about a TRILLION DOLLARS WORTH of them, say "Well, I wanna hold this money uninvested overnight, to see if the market gets any better for me tomorrow, but NO WAY IN HELL am I holding it overnight as just simple-jack CASH.

(c) The Money Market Fund Manager buys a lot of US Treasury Bonds, and the Fed gets to hold onto the cash

(d) The next morning at 9am, the Fed returns the cash, plus OVERNIGHT INTEREST, to the Money Market Fund Managers, to then possibly be invested in the wild Wall Street markets... ..... ........

(e) and the next day it repeats

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So I'll ask again ---- where are the Money Market Funds getting ONE TRILLION DOLLARS PER DAY to buy Treasury Bonds

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Is this the cycle?:

(a) Every Joe Six-Pack with a 401(k) has actual cash pulled out of his paycheck every week

(b) That cash goes to the Retirement Plan managers

(c) Those retirement plan managers buy MONEY MARKET ETFs like SPY

(d) The guys who run the SPY ETF don't like having CASH in their pocket so they buy Treasury Bonds ---- at the 0.00 percent growth rate.

=== ===== ======

Is that actually what's happening?

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This is not DD, I've just tried to summarise a really good and understandable bit of research and partial speculation done by George Gammon over on the 'tubes (no SEC, not that one).

TLDR: Housing market, banks and hedgies r fuk, because risk is through the roof due to COVID stimulus and protections and idiosyncratic stock risk and possibly fuckery happening in the treasury market causing MMFs to lend their money to the Fed in exchange for high quality, lower risk collateral assets instead of to their usual counterparties e.g. banks and hedge funds.

One of the common explanations for the increasing RRP points to banks needing to balance their books because they are so cash money these days they are trying to mitigate liabilities by moving assets into the commercial financial system and cash (liability) out of it, and this is being incentivised with the .05 percent interest rate.

But as explained by George Gammon in this video: https://youtu.be/6j28XQI2gUA

this doesn't make sense since the federal reserve account is already used by prime banking entities and that offers a .15 percent interest rate. Why take a lower interest rate when you already have a mechanism set up providing a higher one?

(Video is 40 minutes long, I advise speeding it up as he has a very deliberately paced delivery that may irk some, but definitely worth watching all the way through for a couple extra wrinkle coupons).

At the core of his thesis, he argues it is the need for PRISTINE collateral for the Money Market Funds (MMFs) who lend money for collateral assets with the aim of profiting from the spread so as to maintain and increase value in the fund. These are low volatility, low risk funds mind you. As he goes on in his video he explains that the repo market is actually valued at 4 trillion dollars a day. The Fed RRP facility is just ONE component of a larger market place.

Ok mister, so why do the MMFs need pristine collateral? Because their usual counterparties such as banks or hedgies are in a position of higher risk (guh who would have guessed?) Therefore they are opting to leverage the Feds RRP facility more and more these days to mitigate some of the markets current risk because they need greater reassurance they aren't lending money out in exchange for junk collateral offered by the commercial banks and hedge funds.

Put simply, if the risk position of banks and hedge funds increases, there is a higher risk th

Hello fellow Redditors,

UK ape here hoping to pick your brains on your other market hedges. I hope that this question falls under the sub rules and guidelines as I appreciate that it is not 100% GME related.

Following months of reading DD on r/GME / r/Superstonk and a 6 month crash course in stonky finance, it appears that we are not too far off a second global financial crisis. The following three points seem to be ringing alarm bells at the moment -

> Michael Burry's twitter warnings of epic bubbles and overleverage.

> Mortgage moratoriums coming to an end in June.

> The P/E ratio of the S&P500 hitting an all time high.

I understand GME is likely the ultimate hedge against a market meltdown but how have you been preparing loved ones and friends?

I understand time in the market > timing the market but surely a money market fund currently offers the safest play for those who don't wish to throw their live savings into GME?

I was never exposed to the disastrous impact on peoples pensions during the 2008 financial crash. Many people don't really pay an attention to their workplace pensions, they just pay a percentage every month. I want to at least make them aware of available options.

Thanks in advance.

EW

https://twitter.com/FinancialJuice/status/1403428517962977285?s=20