Money Market Account OUTFLOWS

Majia here: I've been following SEC Chairwoman Mary Schapiro's concerns about the absence of a safety net for US money markets
http://majiasblog.blogspot.com/2012/08/no-net-for-money-market-funds.html

Today in the Wall Street Journal there is a brief report about declining assets in money funds:

"Assets in Money Funds Slide by $870 Million" by N. Tadena Sep 7 2012 p. C5"

The article states that "money-market funds have had mostly outflows this year..."

Majia here: The explanation is that concerns about exposure to weak European assets are the cause for the outflow.

Money market SAVINGS accounts offered by FDIC insured banks are usually FDIC insured.

However, money market accounts that are investment accounts are not FDIC insured.

I am not sure whether money market accounts offered by Vanguard, Fidelity, American Express, and others are FDIC insured.

If you have accounts with this type of financial institution you should check to see if your accounts are FDIC insured or not.

The European assets that are cited in the article as of concern could refer either to European bank assets or Eurozone bonds, such as Greek bonds.

There is a storm brewing and I hope everyone is preparing accordingly.