So what? Well, listen up pups: Here's the scoop.
The sound bite(byte) world most Americans live in packages their thought like Armour Corp packs spam. Wake up and learn how many supposedly "safe" investment vehicles are now backed by CDO's(collateralized debt obligations).
Several large and very well known money market funds are directly invested in these types of "commercial paper" to the tune of 20 percent or more.
These CDO are often a mix of all types of loans -- car, home, credit card -- and presently many are of querstionabler worth.
This situation is the problem, not some loans to some sub-prime classified debtor.
Supposedly 50% of all commercial paper is in some degree backed by such instruments.
This is the problem; so go check if your money market fund is vulnerable, you might be very surprised by what you will learn.
Plus, take it from RK, pay off all your existing debt obligations asap-- now, and the coming, is not the time to owe money. Mark our words