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.

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Show Notes

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