"Money market funds: Just how safe a haven?" asks The Eagle Tribune of North Andover, Mass.. The article says, "Money market funds are not the plain cash box-spring that they've been popularly believed to be, and now it's all the more important to give yours more scrutiny. Although no one is promoting worry, investors should realize how critical recent government action may have been in preserving their money. And now, perhaps more than ever, anyone with a money market fund, or thinking of putting money into one, should know the differences between them, what to look for, and have a keen eye on what could happen if and when the government lifts its current programs to support them." The piece cites Pete Crane, saying, "The temporary government guarantee program has stabilized money market funds. Assets grew by 20 percent in 2008 and kept growing, even after the Reserve Primary fiasco." It quotes Crane, "In the kingdom of the blind, the one-eyed man is king.... Flat is the new up." In other news, see Friday's LA Times story, "Money fund yields keep falling, but cash stays put".
