Today, we look back 10 years ago when the Subprime Liquidity Crisis reached perhaps its most dangerous days (with the exception of `Sept. 2008 when Lehman went bankrupt and Reserve Primary Fund "broke the buck") with two events -- the meltdown of Credit Suisse Prime Inst MMF and the false reporting of money funds "breaking the buck". Our Dec. 29, 2007 "Link of the Day" was entitled, "The Wall Street Journal writes "How Turmoil Melted a Money Fund"." It "discusses how Credit Suisse Prime Institutional Money Market Fund Prime grew from $1 billion to $25 billion and back down to $10 billion. The [WSJ] piece says, "While money funds at several U.S. banks have been hit with similar losses, the Credit Suisse fund has suffered the most dramatic investor outflows. One reason: Other funds had more-stable investor bases anchored by longtime individual customers." It quotes our Peter Crane, "Credit Suisse was the only money-fund family to see significant outflows during the recent turmoil." Another Crane Data News piece from 10 years ago (Dec. 28, 2007) is titled, " Erroneously Claims Money Funds Halt Redemptions, Break Buck." It says, "Since the credit crisis began in August, `we've repeatedly seen incorrect reporting on money market mutual funds. But a new article takes the misinformation to a new level. In "Ailing fund bail-outs hit $3 billion," reporter Deborah Brewster claims, "Two other fund managers have suspended redemptions at money market funds." Speaking on "breaking the buck", she says "[M]any money funds have done so recently". These statements are both false. Like CNBC and WSJ, FT confuses enhanced cash vehicles with money funds. The article also mistakes total amounts purchased from funds with actual losses or "bail-outs", which are a mere fraction of the total securities purchased. We encourage readers to remain vigilant against such inaccuracies, and to complain about incorrect reporting. See ICI's "Media Advisory: Reporting on Money Market Mutual Funds" which urges reporters to be clear on what is, and what isn't, a "money market" or a "cash" fund. Again, for the record, no money market, or "cash" funds, have halted redemptions or broken the $1.00 NAV during the current crisis, contrary to some reports!"

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