SEC Is Set to Approve Money-Fund Rules

http://online.wsj.com/articles/sec-is-set-to-approve-money-fund-rules-1406067488

The rules, expected to be approved at a Securities and Exchange Commission meeting on Wednesday, are aimed at avoiding a repeat of the investor stampede out of the $2.6 trillion industry that threatened to freeze corporate lending during the 2008 financial crisis.

Under the SEC plan, "prime" money funds whose shares are held by corporations and large institutional investors will have to abandon a stable $1-a-share price and float in value like other mutual funds, according to people familiar with the matter. Investors in these funds would risk losing principal if the share price fell. Prime funds invest in short-term corporate debt.

The plan also would allow all funds to temporarily stop investors from redeeming shares in times of market tumult or impose fees on them to do so, these people said, meaning corporations and other investors may not always have immediate access to their cash.

Our Masters have concluded that puny returns are insufficient to unwind the sheeple's newly found cash saving habits. Therefore, it is necessary to impose risk on the timid and skeptical.
Get out there and buy a Kindle, a house or a car.....or else.