US Government: You Cant Redeem Your Money Market Account!

[JimBowie1958]

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied | Zero Hedge

Yet new regulations proposed by the administration, and specifically by the ever-incompetent Securities and Exchange Commission, seek to pull one of these three core pillars from the foundation of the entire money market industry, by changing the primary assumptions of the key Money Market Rule 2a-7. A key proposal in the overhaul of money market regulation suggests that money market fund managers will have the option to "suspend redemptions to allow for the orderly liquidation of fund assets."

You read that right: this does not refer to the charter of procyclical, leveraged, risk-ridden, transsexual (allegedly) portfolio manager-infested hedge funds like SAC, Citadel, Glenview or even Bridgewater (which in light of ADIA's latest batch of problems, may well be wishing this was in fact the case), but the heart of heretofore assumed safest and most liquid of investment options: Money Market funds, which account for nearly 40% of all investment company assets.

The next time there is a market crash, and you try to withdraw what you thought was "absolutely" safe money, a back office person will get back to you saying, "Sorry - your money is now frozen. Bank runs have become illegal." This is precisely the regulation now proposed by the administration. In essence, the entire US capital market is now a hedge fund, where even presumably the safest investment tranche can be locked out from within your control when the ubiquitous "extraordinary circumstances" arise.

This is too fucking unbelievable. They are actually going to lock out all our money just like Greece and Cyprus.

But at least we will still have pro-football to make us feel better.

 

[R.C. Christian]

I hate to break the bad news, but I already knew this was coming. Next, they'll socialize your 401 K's. That is a promise.

Rise up and fight these bastards any way you can.

 

[S.J.]

Time is running out.

 

[JimBowie1958]

but how to save anything from a government turned brigand? That is the $million question