Tuesday, January 24, 2012

Much Ado About a Money Market Fund

In the latest "gotcha" round, Romney detractors are attempting to push the theory that while Romney is attacking Newt for his Freddie Mac activities, Romney is profiting from investments in the same. Here's a quote from the Boston Globe:
Romney made the investment in a mutual fund called the Government Obligation Fund, managed by Federated Investors Inc. The fund invests in a wide variety of sources, including government agencies and US Treasury notes. But out of a $28.5 billion portfolio, nearly half of the fund was in Fannie Mae, Freddie Mac, and Federal Home Loan Bank notes, according to an SEC filing made in April.

http://www.boston.com/Boston/politicalintelligence/2011/09/romney-pummels-profits-from-fannie-freddie/a2YN7UoFKXQHW1RzAiaW4J/index.html

People and pundits are trying make something out of Romney's investments in Federated's Government Obligation Fund? He "profited"? Here is the big secret that they are conveniently leaving out: the fund is actually a money market fund. Yes, as in $1 per share. As in always $1 per share, plus a bit of dividend income, kind of like interest. That's closer to an interest-bearing savings account than it is some high-flying high risk/return investment. There's your scandal.

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3 comments:

Terrye said...

They are desperate..they want to get rid of the man..send him packing and so they make a big deal out nothing meanwhile Newt has the IRS on his back and no one gives a damn.

One thing I have noticed is that the Democrats are rooting for Newt and so are the folks at Red State, Mark Levin and the rest of the fever swamps. In fact when Newt won in SC the Democratic Party Gala broke into cheers. Imagine that. And needless to say the NBC commentators were doing their best to prop up Newt. He was kind of down in the dumps last night. Maybe it is that IRS investigation.

craigs said...

Am I missing something or are the media and Gingrich so dumb as to not recognize that the taxes Romney paid on his investments at 15% is the SECOND tax Mitt has paid on that money. He paid an original earned income tax on the money when he originally made it of 35%. So,
If Romney was paid $ 1 million , he paid $350,000 in taxes, then invested the $ 1 million, made , say $100,000 in interest on the investment and paid 15% or $15,000 pn that income. So, now he has paid $365,000 on this original income or 36.5 %. The 15 % rate was passed by Gingrichs Congress
I used to think the media had an agenda. Now, I think they're just dumb

CraigS

leighrow said...

All media is opposed to Romney..the MSM because they want Obama so they are pushing Gingrich and will minimize Gingrich's dirt until he is the nominee.

Murdoch who earns FOX doesn't want Romney because he knows Romney can't be bought. Murdoch is known to influence the UK elections and he is attempting to do the same in the U.S..

I would not be surprised if Murdoch is now supporting Obama...Fox News has changed over the course of the past year and a half. It just so happens that Murdoch is being prosecuted in the UK in a huge phone scandel which may lead to prosecutions in the U.S..

I am shocked Romney is doing as well as he is doing. If Romney wins the GOP nomination...he will have most certainly earned it.