So, lets back up a bit for those who might not have been around or those who don’t know.
Stocks you buy have a settlement date, the time you have to produce the money. Back in the day it was a seven day window. Money markets were a novelty then actually created by a guy named James Stover who ran a family of mutual funds in Kansas City.
It’s still there, bigger than ever as stocks and mutual funds and all their derivative like Options and ETFs caught fire over the decades. Once upon a time after the 1929 market crash stocks and mutual funds were like leprosy for many millions.
In the 50s, however, they were beginning to recover and many moonlighting teachers were hawking them door to door. So if your door bell rang at dinner time it was one of three choices, a Jehovah Witness making their last call of the day, an Encyclopedia Britannica salesmen or a moonlighting docent.
The 50s and 60s even had their own version of Bernie Madoff, another Bernie named Bernie Cornfeld who ran a big mutual fund scam.
“The former Brooklyn, N.Y., cabdriver built an investment fund in the 1960s worth $2.5 billion and a personal fortune of $100 million. He began investing in the 1950s, and in 1969 he took his Swiss-based mutual fund company, Investors Overseas Services, public. His army of salespeople, mainly Americans, canvassed door to door in Europe. But when IOS ignominiously collapsed in 1970, his financial empire crashed and thousands of investors lost their money. The short, stocky, bearded financier was jailed for 11 months in Switzerland in 1973 while proceedings over the company were pending.
“He was freed on bail and in 1979 was acquitted by a court in Geneva of embezzling about $7 million of the company's funds.
“Mr. Cornfeld, who was born in Istanbul and raised in New York, often surrounded himself with a harem of beautiful women, saying one-to-one relationships were too complicated. His friends included Hollywood escort Heidi Fleiss, who began a four-year affair with Mr. Cornfeld when she was 19 years old.
“Other friends included Victoria Principal, who starred in the CBS series "Dallas"; Alana Hamilton, ex-wife of rock star Rod Stewart; Princess Ira Von Furstenberg; and Victoria Sellers, the daughter of actor Peter Sellers.
“Mr. Cornfeld had planned a comeback as a financier in the late 1980s. But few had forgotten how the collapse of his fund had rocked the London stock market in the early 1970s.”
The interest rate on those money market funds got pretty high, say, 7-8-9 percent and higher. So if you sent your check for your stock purchase via mail as fewer things then were electronic, there was a time float. You continued to draw interest until your check cleared.
Nice while it lasted especially in high interest rate scenarios like then.
But Wall Street like the government wants its money and they want it as fast as they can get it. So before long that settlement date was cut to five days and then after time to three days. You get the drift.
Here’s more drift and why. Why
They are tightening the garrote around your freedoms at every corner and opportunity. Enter CBDCs aka Central bank digital currencies. It’s not higher math for you. It’s higher math for them and lower for you.
Like it or not there’s a long history of politicians selling out their constituents, usually under the guise it’s something they say is good for you. More convenient, more safe, more BS.
Trust of politicians as it should be right now and has been remains lower than a fat goose’s belly after a huge meal.
Politicians is plural make no mistake.