New York Times' "The Cash Advantage"
Sunday's New York Times joins the latest "cash is king" bandwagon with "The Cash Advantage (Even When Rates Are Low)". The article quotes David Darst of Morgan Stanley, "The biggest mistake people make is reaching for yield and putting their capital at risk.... They should think of cash as their safe harbor." It adds, "Like Mr. Darst, Mr. Schatsky recommends putting cash into either money market mutual funds or short-term C.D.'s with maturities of three to six months. As for other types of investments that the financial industry might market as being like cash, he said, 'if the interest rates are too high, then it's probably too good to be true.'"
Also, yesterday's NYT writing on `Bear Stearns in "News Analysis A Wall Street Domino Theory", said, "Money market funds also reduced their holdings of short-term debt issued by Bear, according to industry officials."
