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>> Furthermore, while they are not FDIC insured, most brokers do insure - or at least individually guarantee their asset value - and no MMF has ever lost value. <<

I don't know that fund families "guarantee" a constant NAV; in fact, I always see disclaimers stating that money funds CAN lose principal. While there's no guarantee they will continue to do it, the major brokerages and fund families know that a money market fund that loses principal is the kiss of death for that firm's money funds, and perhaps confidence in money market funds everywhere.

To date there have been a couple of money funds which lost a cent or two off of their typical $1 share price, but the fund families contributed cash of their own to keep the share price stable. That's a small price for them to pay compared to a massive, widespread loss of confidence in money market funds and the fees they generate for the fund families and brokerages.

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