Wells Fargo Fund Commentary
While it's now a little dated, we found this recent Wells Fargo Fund Commentary "Overview, Strategy, and Outlook, as of September 30, 2009" good reading. It contains an excellent review of September 2008, saying, "We did it. We passed the one-year anniversary of the beginning of the extraordinary credit and liquidity crisis that began in the summer of 2007 without further crisis, panic, or calamity. The decisive steps taken over the past year by central banks around the world, and especially the U.S. Federal Reserve Bank, have led to a marked improvement in conditions in the money markets. Now the focus of market participants has shifted to the possible inflationary implications and unwinding of the programs that have led to the improved conditions we now enjoy. This shift in emphasis creates its own set of challenges for the money markets." It continues, "September 2009 was a completely different world than the one we lived in a year ago, at least in the financial markets. To see how far we've come, it might be helpful to revisit some of the events of September 2008. [See article for the highlights.] ... Now, with the improvement in the markets, the programs designed last fall to support the money markets continue to decline in importance. The main programs in this sector are the Commercial Paper Funding Facility (CPFF) and the Asset-Backed Commercial Paper Money Market Mutual Fund Lending Facility (AMLF)."
