Up pops those pesky Auction Rate Securities. You remember them. Financial institutions sold them to the wealthy as a place to park their money that was just like cash but yielded a bit more. Whoopsie. They weren’t like cash at all. Rather, they are long-term debt instruments that get turned over on a short-term basis. [...]
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Most brokerages are refusing to buy them back which means the investors can’t get any money out of what was sold to them as a cash equivalent. Ouch. Who buys auction-rate securities? It’s not just “the rich.”‘ I’ve heard from self-employed people who thought it was a good, temporary place for their life savings, at [...] |  | ||||
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