We all hope that the "respected" business news sources get information correct and write factually correct articles. This does not seem to be the case with the recent money market problems.
The Financial Times ran a story entitled: Ailing fund bail-outs hit $3bn and repackaged the story in another article entitled: More money funds are bailed out. The articles chronicle some of the problems normally safe money market funds have run into because of the credit crisis. But Crane Data, a money market and mutual fund information company had this to say about the reporting:
"Since the credit crisis began in August, we'âve repeatedly seen incorrect reporting on money market mutual funds. But a new FT.âcom article takes the misinformation to a new level. In "Ailing fund bail-âouts hit $â3 billion," reporter Deborah Brewster claims, "Two other fund managers have suspended redemptions at money market funds." Speaking on "breaking the buck", she says "[âM]âany money funds have done so recently". These statements are both false. Like CNBC and WSJ, FT confuses enhanced cash vehicles with money funds. The article also mistakes total amounts purchased from funds with actual losses or "âbail-âouts", which are a mere fraction of the total securities purchased."
In a previous article I wrote (Are your money markets safe?), I did seem to find two money market funds, not enhanced money markets that were bailed out by their parent bank so there is some stress in the money market world. But there is also quite a bit of confusion and misinformation being reported.
Related Articles:
What Is a Money Market Fund by Sam Cass - Dec 28, 2007
UmbrellaBank.com by BestCash Admin - Sep 12, 2007
Are Your Money Market Funds Safe? by Sam Cass - Dec 21, 2007
Are all US Government Money Market Funds Created Equal? by JRodgers - Jun 02, 2008.
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