An asset market segmentation model is constructed to study the dy- namics of the choice of credit and cash with theft and monetary policy implications. In equilibrium, only asset market participants can have a liquidity insurance against theft and monetary policy has asymmet- ric effects across economic individuals. An anticipated money injection decreases theft and increases the use of cash. Welfare always improves with inflation. However, for some, an unanticipated money injection in- creases theft and the use of credit while welfare decreases. The optimal money growth rate is set to minimize theft and may be positive depend- ing on the size of redistribution. The Friedman rule is suboptimal.