OpEd: "This does not affect me; I am in Fixed; "

I am hearing folks say that they are not affected by the current banking crisis because they are not in stocks---they have elected the "fixed" option for their retirement....... they could not be more wrong.

First, when the credit markets seize, the very simplest of transactions, such as cashing a check is affected---many remember the "checkholds" of the 1980's when money
was not credited for several days till the actual money came to the bank. Some banks with less liquidity still do this routinely. Some do not charge for regular customers and charge walk ins. It all has to do with liquidity. And when banks "Freeze UP"----the whole country moves to CASH.

On the matter of "FIXED"----most fixed funds invested in for 401K or 403B accounts list the original investment amount and then when customers ask who guarantees it, they just respond: "The Insurance Company guarantees this investment"-----The problem is of couse that in the case of AIG, and in the case of all the credit default swaps, the insurance was paid for, but did not deliver when the non-payment occurred. In short---as a fixed investor you are deeply involved in the current crisis---and should review the many articles about this in order to plan properly.

As I young college student, I worked with just CASH. Kind of nostalgic to get back to it. And only CASH. Should be interesting.