Money Funds see largest drop ever in history
Money market funds saw nearly $90 billion of net investor cash pulled out on Wednesday, among the largest single-day drops in history. Not a good sign of investor confidence, whenever anything makes it into the history books there must certainly be a study of cause and effect. On the politcal front Republican hopeful John McCain spoke bluntly, saying he would fire SEC head Christopher Cox. A first in financial history, and a burst of honest opinion from a politician are just two of the many events this week.
“This is a phenomenon that would only matter if it continues,” said Peter Crane, president of market research firm Crane Data. Crane spoke to the mutual fund issue, not the honesty of politicians.