September 5, 2008
I could not believe what I was reading in the Wall Street Journal article today about the fact that the SEC is proposing changes that would remove some of the restrictions that prevent safe money market funds from trying to raise their yields by speculating in riskier securities. Are you people crazy? Are you totally unaware of the huge financial crisis this country is now in due to speculation and risky investments by institutions that should have known better and also should have been much more carefully regulated and supervised by the SEC.
Money market funds have been the one bright and safe spot on the investment horizon for those people who are looking for safety, preservation of capital and security. This new plan makes absolutely no sense under any circumstances let alone today's very weak and fragile investment market. Let's keep things the way they are and use the highest degree of common sense in protecting those who don't want or need more speculation. In other words do what is right, period. I am totally against this new plan and think it should be dropped and forgotten for the good of investors, mutual funds, and the country.