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The Wall Street Journal is Right: Money Market Fund Rules Are Essential to Preventing Financial Crashes and Need to Be Stronger

One of the most consequential events during the 2008 financial crisis was when the Reserve Primary Fund “broke the buck” right after Lehman Brothers collapsed into bankruptcy.  The result was a run on money market funds (MMF) which quickly had dire ripple effects throughout the financial system and in the real economy.  To stop the run and the contagion, within days the Treasury backstopped th