SEC Fails Again.

This is not good news.

http://online.wsj.com/article/BT-CO-20100126-716436.html?mod=WSJ_latestheadlines

This will just lead investors to think that money market mutual funds are risk-less investments that don't fluctuate in value. We all know this is not true from the Reserve Fund disaster. If the SEC had any nerve, they would have forced these money market funds to post daily NAV regardless if they are below a buck or not.

Now the reason the SEC is doing this is because they are worried about runs on funds that suddenly fall below $1, but risk will greatly be reigned in before we have a crisis, not after.

I can understand the importance of that $1 figure, but if these guys really cared about systemic risk issues this would have been a perfect place to start.