Of course The Reserve employees really made the problem much worse by informing select clients of the problem thereby starting a run.

"Goodyear Tire & Rubber Co. will draw $600 million from its credit lines because of an inability to access some U.S. cash investments, more than half of which are held in a troubled money-market fund."

Maybe people don't want to lend to the money market at %3 to %4 per year to help corporations charge %6 per year more for their products.  A simple solution would be offer higher interest in the money markets. 

However, Wall Street has gone too far, putting mortgage backed securities in my money market, raising the my perceived risk much higher that the benefit.  I saw my money markets as a dumping ground for mortgage backed securities.  Wall Street has gone too far asking taxpayers to hand over $700 billion to banks so they can lend it back to us with interest.  

Government, Congress told banks through various acts that they had to make sub-prime loans. C lost a lawsuit which forced them to make the loans. Congress created the mess. Everyone has to be equal BS and politically correct socialistic liberals in Washington have overstepped there boundaries and now the bill is due. To us. You keep messing with free markets and wonder why you have problems. Now they have their wish we are now a Marxist state. We can stand in the bread line like Moscow.