I'd like to understand more about the risks of a money market fund you allude to. I keep my emergency fund in an Insured Money Market Account at the credit union. This account gives me acceptable interest (4.25%) and is insured. What can go wrong? I know I can get more interest in CDs but I like the liquidity of just doing an electronic transfer to the checking account if I need it.
You money market at the credit union should be NCUA insured (assuming your total money at the credit union falls within insurance limits). What Hedge is talking about is money markets at a brokerage, which are not insured. (You can get insured CDs through a brokerage.)
Actually, I believe there is some kind of insurance for brokerages, but it isn't government, which is presumed to be safer (though I saw in the news yesterday that the Democratic leadership in the House rejected out of hand the idea of Murtha and some others to raise taxes to pay for the war, which certainly restores my faith that eventually the US government will not be able to cover its obligations).
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