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Some of us warned against being in any money market funds that did not limit their investments to U. S. treasuries.

Now the Reserve Fund has lost 3%. That figure was on the news. The article below places the loss at a little over 1%, if I did the math right.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_b7...

Sept. 16 (Bloomberg) -- Reserve Primary Fund, a money- market mutual fund with $64.8 billion in assets as of Aug. 31, fell below $1 a share in net asset value because of losses on debt issued by Lehman Brothers Holdings Inc.

Investor redemptions will be delayed as long as seven days, the fund's owner, Reserve Management Corp., said today in a statement. Withdrawals requested before 3 p.m. New York time today will be paid at $1 a share...

The fund held $785 million in Lehman Brothers commercial paper and medium-term notes. The fund's board revalued the Lehman holdings at $0 effective 4:00 p.m. Lehman filed for bankruptcy protection yesterday.

Bent [the manager] often said the best money-market funds should be ``boring.'' He derided other funds that invested in securities linked to subprime mortgages and other risky debt.
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