Back in September, the Treasury Department put in place an emergency plan to temporarily guarantee money market funds for three months.
Well, it's going to be longer than that. The Treasury Department just announced the guarantee will stay in place until the end of April 2009.
Maybe they should keep it in place longer. So far the government has made money on the deal.
Treasury stepped in after one fund "broke the buck", meaning investors were probably not going to get all their money back — a big deal, since these funds are supposed to be ultra-safe. The government didn't want people yanking their money out of money market funds, so they offered insurance, for a small price.
So far no other money market funds have gotten into trouble though. Which means the government has been collecting those insurance premiums. So far it should be in the black on this one.