It WAS Sept. 18 and it was a direct result of the failure of Lehman Bros. on the 15th. That precipitated a Money Market Mutual fund to “break the buck” given their exposure to Lehman Bros. What followed was many institutional AND retail (average Joes) investors to simply MOVE out of one type of Money Market funds to a US Treasury Money Market fund comprised entirely of US Treasury securities.This is why in short order the yield on these short term US Treasury securities went close to zero,then slightly below zero yield. People were saying “I want return OF capital more than return on capital.”
Please know I am a devout conservative, deeply concerned about the current government and worried sick about our country’s future, but this was NOT an October surpirse OR George Soros or anything else malicious. It was simply a result of the mortgage meltdown and mortgage securities owned by Bear Stearns which failed in March and then Lehman Bros. Keep in mind at about the same time the government took over Fannie and Freddie and AIG.
I want return OF capital more than return on capital.
I wanted the opposite, I grabbed a big chunk out of my brokerage MM account and put it into a 5% CD at my bank/