break the buck Concepts

Cryptoeconomics: Fundamental Principles of Bitcoin

by Eric Voskuil, James Chiang and Amir Taaki · 28 Feb 2020 · 365pp · 56,751 words

are typically insured by the taxpayer, more tightly regulated by the state, and accounted for as bank credit. It is rare for a MMF to “break the buck ” [541] but of course it can and does happen. Bank failures also happen but are hidden by taxpayer insurance. Bank credit is not truly

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] . The distinction is in the allocation of insufficient reserve (negative rate of return), with the former being “first come, first served ” [675] and the latter “breaking the buck ” [676] . The lack of state intervention is the common concept of free banking [677] , where there is no statutory control [678] , state insurance [679

Smart Money: How High-Stakes Financial Innovation Is Reshaping Our WorldÑFor the Better

by Andrew Palmer · 13 Apr 2015 · 280pp · 79,029 words

it. For many, investing in a money-market fund is also a bet on a promise, but this time by a private actor not to “break the buck”—in other words, to give a dollar back for each dollar invested. These new products may look like the old ones, in other words

Money Free and Unfree

by George A. Selgin · 14 Jun 2017 · 454pp · 134,482 words

sponsors capable of making up for the loss), had to reduce its share price below the pledged $1 level to 97 cents. Reserve Primary’s “breaking the buck” led to several days of large redemptions from other (especially institutional) prime money market funds and, thereby, to a sharp drop in the demand

House of Debt: How They (And You) Caused the Great Recession, and How We Can Prevent It From Happening Again

by Atif Mian and Amir Sufi · 11 May 2014 · 249pp · 66,383 words

house prices falling more than 10 percent. During the financial crisis, people investing in money-market funds may have believed that no fund could ever “break the buck,” or pay back less than the nominal amount put in the account. Obviously, such neglect leads investors to make systematic mistakes and exercise poor

Planet Ponzi

by Mitch Feierstein · 2 Feb 2012 · 393pp · 115,263 words

so safe you don’t have to think about it. (Truth is, it never was.) Banks might fail, including large ones. Money market funds may ‘break the buck’‌—‌that is, lose money. Equally, you need to shed some of your Ponzi-ish optimism. House prices have fallen, but they may fall further

Fool's Gold: How the Bold Dream of a Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe

by Gillian Tett · 11 May 2009 · 311pp · 99,699 words

4:00 p.m. New York time today.” That threatened to spark more panic. America’s money-market fund industry had prided itself on never “breaking the buck,” and the Reserve had just done so. A run on the money-market funds now seemed likely. Meanwhile, as Steven Black and Vikram Pandit

The Quiet Coup: Neoliberalism and the Looting of America

by Mehrsa Baradaran · 7 May 2024 · 470pp · 158,007 words

it lost, meaning that the firm could no longer promise investors dollar for dollar redemption. Each investor could recover only 97 cents—a phenomenon called “breaking the buck,” which set off a panic as anxious savers rushed to take their money out of all money market accounts. In other words, even a

In FED We Trust: Ben Bernanke's War on the Great Panic

by David Wessel · 3 Aug 2009 · 350pp · 109,220 words

a moment, he added, “If we had, we wouldn’t have gotten it … but at least we would have been able to say we tried.” BREAKING THE BUCK The turmoil in the financial markets during the week of September 15 didn’t revolve only around newfangled financial instruments, cross-border sophisticated bets

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issued a press release. The Lehman paper in its portfolio was worthless and the Fund’s shares were worth not $1, but only 97 cents: breaking the buck. The news triggered a run that spread through the $3.4 trillion industry. (Bruce Bent II and his father, Bruce Bent Sr., were later

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, they had to find a way to assure consumers that the Reserve Primary Fund wouldn’t be followed by scores of other money market funds breaking the buck. At the Fed, Don Kohn took charge of the response while Bernanke went to Capitol Hill and Warsh to New York. At the Treasury

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it would stand behind any money market mutual fund that agreed to pay an insurance premium so it could insure customers that it wouldn’t break the buck, an extraordinary move by the government. To pay any claims, Paulson turned to the Exchange Stabilization Fund, the kitty Congress had created in 1934

Investment: A History

by Norton Reamer and Jesse Downing · 19 Feb 2016

savings institutions could pay, which was a large problem during this inﬂationary period. The central mission of these funds was to generate returns while not “breaking the buck,” or having the net asset value decline below $1 per unit. Indeed, these funds rarely failed at their mission, with the exception of some

A First-Class Catastrophe: The Road to Black Monday, the Worst Day in Wall Street History

by Diana B. Henriques · 18 Sep 2017 · 526pp · 144,019 words

had lured back deposits from a number of money market funds over the past year, and if Continental failed, some of them might have to “break the buck”—that is, they might be unable to meet their implicit promise to always redeem their shares for a dollar. That would send the panic