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Article: Money funds' `crash' way overblown; Lot more stable than the stock market.(Business)
- Article from:
- The Boston Herald
- Article date:
- September 21, 2008
- Author:
CopyrightCOPYRIGHT 2008 Boston Herald. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Chuck Jaffe
Despite what you may have heard on television news or read in the headlines, no money-market funds "collapsed" in the last week. While some investors rushed the exits, there were no lost fortunes; the money markets - even at their worst - still felt a whole lot safer than the stock market.
Yet that perspective was missing in much of the reporting on the Reserve Primary fund "breaking the buck" last Tuesday, taking the heretofore unthinkable step of dropping its share price from the static $1 level investors expect from money funds.
And yet, understanding the situation and gauging its true severity is crucial for investors ...