Capital

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    This Ominous Risk to Your Capital Is Growing

    By , Money Morning -

    If there's one thing that concerns everyone it's a threat to their capital.

    So you'll be interested to know that the risk of a new type of strategy to capitalize faltering banks keeps growing every day.

    It's a strategy that's been tried before, with just enough "success" to be dangerous, and it puts your hard-earned capital at risk.

    I've promised to keep you abreast on the evolution of this insidious way for governments to offload risk. Also I wanted to update you on how to protect yourself against these measures impacting your portfolio.

    Today I have news on both fronts that's both unsettling and enlightening.

    But let's start right now at the beginning and look at how your capital may be at risk, and what's so alarming...

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This Ominous Risk to Your Capital Is Growing

By , Money Morning -

If there's one thing that concerns everyone it's a threat to their capital.

So you'll be interested to know that the risk of a new type of strategy to capitalize faltering banks keeps growing every day.

It's a strategy that's been tried before, with just enough "success" to be dangerous, and it puts your hard-earned capital at risk.

I've promised to keep you abreast on the evolution of this insidious way for governments to offload risk. Also I wanted to update you on how to protect yourself against these measures impacting your portfolio.

Today I have news on both fronts that's both unsettling and enlightening.

But let's start right now at the beginning and look at how your capital may be at risk, and what's so alarming...

$900 Billion in Capital Is About to Move

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

Six years after the financial crisis, the SEC finally concluded a four-year battle with financial industry lobbyists to toughen regulations governing money market funds.

Readers may remember that a run at the $62.5 billion Reserve Primary Fund during the 2008 financial crisis brought the multi-trillion money market industry to a standstill.

And it required federal intervention to prevent a market collapse…

The reason: the Reserve Primary Fund was forced to “break the buck” (that is, lower its price to below the $1.00-per-share industry standard for its type of money market funds) due to heavy exposure to plummeting Lehman Brothers debt securities.

Here’s why the new regulations are about to cause a colossal market cash shift…

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