The world financial crisis took a new and dangerous turn today as RESERVE PRIMARY FUND, the oldest money market fund in the United States and considered completely safe, "broke the buck" by valuing its deposits at 97 cents on the dollar.
This means instead of earning interest and profiting from their money market account, people who put their money in that money market fund now have only 97 cents of each dollar!
This is very, very serious news because when folks realize (tomorrow) that not even money market accounts are safe, they will try to pull their money out and . . . . . surprise surprise . . . . the money market won't have the cash on hand to give them their money back. Investors will be told they must wait a week, two weeks, perhaps even longer to get anything at all from their accounts. This will cause a panic and . . . . . . you know the rest.