The Financial Times writes on the "Flight of cash into money market funds" in its Sunday edition. The article discusses the recent $1 trillion-plus buildup of money funds assets (over 52 weeks) and flight to Treasuries and cash. "There is a flight to cash and the build-up has been massive and unprecedented," said Peter Crane, publisher of the monthly Money Fund Intelligence newsletter," quotes the FT. It also quotes Crane, "When you get rate cuts stacked on each other, institutions ride the lag." The piece adds, "The extent of the move in the Treasury bill markets, where there has been so much new supply, is an indication of how large the month-end settlement date pressure is for the banks," quoting Lou Crandall of Wrightson ICAP. Plus, see WSJ's "How the Credit Mess Squeezes You".
