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Should I be worried about money currently sitting in money market funds (VUSXX)?

by mupuff1234 4y ago

rpvnwnkl 4y ago
That might be a good question for chatGPT
- episteme 4y ago
  Why?
- DontchaKnowit 4y ago
  God were only like a few months in and im already so annoyed with people bringing up chat gpt. No this isnt a good question for chat gpt because chatgpt has no critical thinking skills, which is the foundation of a sound investment strategy. Chat gpt is trained on the internet. The ratio of bad advice to good advice on the internet is about a million to one.
NotYourLawyer 4y ago
Nothing I ever say is investing advice or legal advice. It I’m not worried.
lumost 4y ago
Not your finance person, but a good way to think about an abstract event like “US debt default” is through two lenses. 1) it’s an event that can’t happen unless a lot of powerful folks take a bath. Odds are good that energy will be directed to prevent it - or failing the ability to muster energy, you won’t care. 2) If the dollar collapses, what asset would you want to hold? Would it make sense to hold that asset absent a crash?
- radicaldreamer 4y ago
  For (2) - obvious answer here is crypto but again, the crypto market might implode because if (1) actually happens, the US gov is extremely incentivized to make crypto ownership and trading illegal.
  - unusualmonkey 4y ago
    There's nothing obvious about crypto being a good asset if the us govt. defaults.
    - ur-whale 4y ago
      > There's nothing obvious about crypto being a good asset if the us govt. defaults. Says you, and without even the hint of an argument to back your position.
  - lumost 4y ago
    Crypto may be a bad bet in a world where the dollar implodes. If crypto is predominantly healed by dollar holders - rebalancing from crypto to the dollar denominated assets they need to function could harm crypto prices. Alternately, in the event of a dollar default - the world may not be conducive to the capex+energy expenditure required to mine crypto. If interest rates went to 20-30%, I’m not sure that crypto mining would be a viable concern - causing instability throughout the crypto world. That being said, whether crypto is a good hedge or not really depends on whether it’s worth putting money in today - regardless of the potential for US default. Particularly in comparison to Yen, euro, and yuan assets.
    - dannyw 4y ago
      Crypto mining is self adjusting, and Ethereum doesn't use mining anymore.
  - htss2013 4y ago
    If the US government outlawed crypto to save the USD, they'd have to also outlaw gold, because that's where all the money would flow to instead. The rest of the world wouldn't outlaw gold and crypto, so the effort to kill alternatives would fail and it would just accelerate fleeing USD into gold and crypto.
    - thatguy0900 4y ago
      The us government has outlawed gold before. No reason it couldn't be on the table again
- artificialLimbs 4y ago
  Re: 2: Gold and land.
  - owenmarshall 4y ago
    > land “Dollar collapse” means a collapse of the US government. In that case, holding land becomes very literal, you must physically occupy and defend it; your deed to some property may not be worth much.
    - cobertos 4y ago
      The federal government is not the main enforcer of this. Counties generally do the work of tracking this. It's the job of the register of deeds. Failing that, normally the state would step in. You would require a failure of the federal, state, and county government for this to occur
      - thatguy0900 4y ago
        Well, those all use the dollar. I can't really see a situation where the federal government collapses but my local register of deeds keeps property lines up to date.
      - brewdad 4y ago
        It might be a failure of imagination but I can’t perceive a scenario where the federal government collapses and the county sheriff holds things together until a new government can be rebuilt.
        zamnos 4y ago
        Who's invading who if the federal government collapses? Has Arlington, VA been amassing guns and ammo this whole time, just waiting for the federal government to fall so they can invade Washington DC? I'm sure it's a failure of my imagination too, or a faith in humanity, but I don't see roving hordes forming and raiding the countryside like something out of mad max or a zombie movie the instant the federal government falls. At which point my county, and its sheriff is the closest government, holding down order.
- dullcrisp 4y ago
  Bottle caps, and no not really.
- quickthrower2 4y ago
  Negative dollars, and some foreign asset

Should I be worried about money currently sitting in money market funds (VUSXX)?

rpvnwnkl 4y ago

That might be a good question for chatGPT

episteme 4y ago
Why?
DontchaKnowit 4y ago
God were only like a few months in and im already so annoyed with people bringing up chat gpt. No this isnt a good question for chat gpt because chatgpt has no critical thinking skills, which is the foundation of a sound investment strategy. Chat gpt is trained on the internet. The ratio of bad advice to good advice on the internet is about a million to one.

NotYourLawyer 4y ago

Nothing I ever say is investing advice or legal advice. It I’m not worried.

lumost 4y ago

Not your finance person, but a good way to think about an abstract event like “US debt default” is through two lenses. 1) it’s an event that can’t happen unless a lot of powerful folks take a bath. Odds are good that energy will be directed to prevent it - or failing the ability to muster energy, you won’t care. 2) If the dollar collapses, what asset would you want to hold? Would it make sense to hold that asset absent a crash?

radicaldreamer 4y ago
For (2) - obvious answer here is crypto but again, the crypto market might implode because if (1) actually happens, the US gov is extremely incentivized to make crypto ownership and trading illegal.
- unusualmonkey 4y ago
  There's nothing obvious about crypto being a good asset if the us govt. defaults.
  - ur-whale 4y ago
    > There's nothing obvious about crypto being a good asset if the us govt. defaults. Says you, and without even the hint of an argument to back your position.
- lumost 4y ago
  Crypto may be a bad bet in a world where the dollar implodes. If crypto is predominantly healed by dollar holders - rebalancing from crypto to the dollar denominated assets they need to function could harm crypto prices. Alternately, in the event of a dollar default - the world may not be conducive to the capex+energy expenditure required to mine crypto. If interest rates went to 20-30%, I’m not sure that crypto mining would be a viable concern - causing instability throughout the crypto world. That being said, whether crypto is a good hedge or not really depends on whether it’s worth putting money in today - regardless of the potential for US default. Particularly in comparison to Yen, euro, and yuan assets.
  - dannyw 4y ago
    Crypto mining is self adjusting, and Ethereum doesn't use mining anymore.
- htss2013 4y ago
  If the US government outlawed crypto to save the USD, they'd have to also outlaw gold, because that's where all the money would flow to instead. The rest of the world wouldn't outlaw gold and crypto, so the effort to kill alternatives would fail and it would just accelerate fleeing USD into gold and crypto.
  - thatguy0900 4y ago
    The us government has outlawed gold before. No reason it couldn't be on the table again
artificialLimbs 4y ago
Re: 2: Gold and land.
- owenmarshall 4y ago
  > land “Dollar collapse” means a collapse of the US government. In that case, holding land becomes very literal, you must physically occupy and defend it; your deed to some property may not be worth much.
  - cobertos 4y ago
    The federal government is not the main enforcer of this. Counties generally do the work of tracking this. It's the job of the register of deeds. Failing that, normally the state would step in. You would require a failure of the federal, state, and county government for this to occur
    - thatguy0900 4y ago
      Well, those all use the dollar. I can't really see a situation where the federal government collapses but my local register of deeds keeps property lines up to date.
    - brewdad 4y ago
      It might be a failure of imagination but I can’t perceive a scenario where the federal government collapses and the county sheriff holds things together until a new government can be rebuilt.
      - zamnos 4y ago
        Who's invading who if the federal government collapses? Has Arlington, VA been amassing guns and ammo this whole time, just waiting for the federal government to fall so they can invade Washington DC? I'm sure it's a failure of my imagination too, or a faith in humanity, but I don't see roving hordes forming and raiding the countryside like something out of mad max or a zombie movie the instant the federal government falls. At which point my county, and its sheriff is the closest government, holding down order.
dullcrisp 4y ago
Bottle caps, and no not really.
quickthrower2 4y ago
Negative dollars, and some foreign asset