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Article: The Truth about Money: Some money markets not as safe as usual in 2007
- Article from:
- Maryland Gazette
- Article date:
- March 19, 2008
- Author:
CopyrightCopyright 2008 Maryland Gazette. Provided by ProQuest LLC. (Hide copyright information)
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Given the recent turbulence in the market, it's appropriate to
review 2007. I'm not referring to the stock market. I'm talking
about the money market.
Money markets consist of two breeds: money-market accounts, which
are offered by banks and are FDIC-insured, and money-market funds,
which are offered by mutual-fund companies and are not FDIC-
insured. It is the latter that has our attention and that is the
focus of this update.
Money-market funds hold $3 trillion of the $11 trillion in assets
in the mutual-fund industry, according to the Investment Company
Institute. Consumers favor money-market funds because it's easy to
transfer money between them and your mutual funds, and they
generally ...