Busted

It's not surprising that rea estate developers are raising their hands for relief. Everybody is feeling it.

What is surprising is the intractable situation with money market funds and the fact that it's happening under the radar for now. Money market funds are supposed to be like cash. The NAV is always $1.00 (only 3 or 4 have ever lost any value) and they pay a low interest rate, usually 1.5 - 3%.

Short-term treasury interest rates have moved so low that the real interest rate of some funds is about to turn negative - that is the interest earned on portfolio investments will be less that the expenses incurred in running the fund. That is downright unfixable.

The futures are down a little, I'm fighting a cold and this week looks like a quiet one.