Investment News writes "The buck stops fear? Treasury-wary advisers should consider cash". It says, "As the Washington debt limit spectacle grinds on, financial advisers might want to consider their options with regard to cash management if for no other reason than peace of mind. Granted, in the event of a full-blown default by the U.S. Treasury, "we are all in a world of hurt," according to Eric Lansky, director at StoneCastle Partners LLC, a cash management firm. However, with a full-scale default seen as a remote scenario, Mr. Lansky said investors could be protected from a more plausible short-term default or downgrade of U.S. debt by seeking the shelter of Federal Deposit Insurance Corp.-backed cash investments." The article also quotes Peter Crane, president and chief executive of Crane Data LLC, "Default [by the U.S. government] is a threat to money funds and the entire banking system.... Without the backing of the U.S. Treasury [in the event of a full scale default], the FDIC insurance fund would last about 45 minutes. FDIC insurance calms people's nerves because they assume there's a government guarantee behind it, but I don't think anyone would get all warm and fuzzy about FDIC if it weren't backed by the Treasury." See also yesterday's Wall Street Journal piece "Money Funds Dial Down Risk".

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September