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Anorak | The Money Markets Are Dead

The Money Markets Are Dead

by | 1st, October 2008

This afternoon, as reported in the Newy York Times, the money markets ceased to exist.

“The money markets have completely broken down, with no trading taking place at all,” said Christoph Rieger, a fixed-income strategist at Dresdner Kleinwort in Frankfurt. “There is no market any more. Central banks are the only providers of cash to the market; no one else is lending.”

That’s the bad news.

The really bad news is that the SEC has taken leave of what little sense it possesses and put out a new accounting standard on how financial concerns have to value their assets. The reality is that many of the assets

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Posted: 1st, October 2008 | In: News Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink