How The Covid Shock Nearly Destroyed The Financial System | Money For the Rest of Us Podcast

Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.
Topics covered include:
What are the differences between shocks and vulnerabilities
What are the four main vulnerabilities the Federal Reserve monitors
How deleveraging and demands for liquidity lead to market stresses
What are the types of money market funds and how were they impacted by the Covid 19 shock
How was Treasury bond trading impacted by the Covid shock
Why the Federal Reserve stepped in to stop the market contagion from spreading
What are the downsides to central bank interventions
What individual investors can do to protect against future shocks

Thanks to Mint Mobile and Truebill for sponsoring the episode.
For more information on this episode click here.

Show Notes
President’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the Treasury
Report of the President’s Working Group on Financial Markets: Overview of Recent Events and Potential Reform Options for Money Market Funds, December 2020—U.S. Department of the Treasury
U.S. Credit Markets Interconnectedness and the Effects of the COVID-19 Economic Shock by S.P. Kothari, Dalia Blass, Alan Cohen, Sumit Rajpal, and SEC Research Staff—U.S. Securities and Exchange Commission
Financial Stability Report November 2020—Board of Governors of the Federal Reserve System
How Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisor
Overnight Index Swap by James Chen—Investopedia
Cash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—Invesco
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