People are quitting money market mutual funds - surprise, surprise.

See this Bloomberg article entitled “There’s a $300 Billion exodus from money markets ahead”.

Reason is that MMMFs are being barred from making the fraudulent promise that every private bank makes, i.e. “you deposit your money with us, and you keep instant access to your money, while your money is loaned on long term”. That’s “borrow short and lend long” which always ends in tears, at which point taxpayers come to the rescue of the fraudsters. (You may have noticed that the Fed loaned best part of a trillion to private banks for over a year during the recent crisis at near zero rates of interest.)

Those who used to have accounts at MMMFs are now barred from profiting from that fraud. But banks have not been barred. So why not move your money to a bank and carry on exploiting the taxpayer? You know it makes sense...:-)