Over the summer, there was concern about the exposure US money market accounts had to European debt. See the Reuters article here. Yesterday, Doubleline Funds presented the following chart of the Prime Money Market Funds exposure to European Banks. As you can see, 6 months ago money markets had about 50% of their assets exposed to euro debt. Today, its 0%. So over the past few months, as the US stock market soared higher on each and every rumor and promise from Euro leaders, the money market funds didn't listen and they continued to liquidate their positions. The question is, who is correct on Europe; the US stock market or the US money markets?
