Cash Stashed in Funds Instead of Banks Fuels US Slump Risks
- More than $5 trillion has been plowed into money-market funds
- Smaller banks are bearing the brunt of the exodus by savers
An American Flag hangs from a building in the Financial District of New York.
Photographer: Spencer Platt/Getty ImagesThis article is for subscribers only.
Money-market mutual funds are proving an irresistible place for investors to park their cash right now instead of banks.
The amount squirreled away in them has surged to more than $5 trillion and that risks becoming a problem for the US economy if that grows too much and too quickly.