Money market funds are the stepchildren of finance. Though they manage more than $4 trillion in assets, they have not gotten much attention recently. Sen. Chris Dodd (D-Conn.)'s regulatory reform proposal does not even mention money market funds, which we believe is a glaring mistake.

Before the crisis, money funds were considered a safe haven. Since their inception in the 1970s, no fund of significant size ever broke the buck. Thus, it is not surprising that in 2007, when the crisis started, money funds had significant inflows from investors seeking safety.

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