Are Financial Reporters Getting the Facts Correct?

We all hope that the "respected" business news sources get information correct and write factually correct articles. This does not seem to be the case with the recent money market problems.

The Financial Times ran a story entitled: Ailing fund bailouts hit $3bn and repackaged the story in another article entitled: More money funds are bailed out. The articles chronicle some of the problems normally safe money market funds have run into because of the credit crisis. But Crane Data, a money market and mutual fund information company had this to say about the reporting:

"Since the credit crisis began in August, we've repeatedly seen incorrect reporting on money market mutual funds. But a new FT.com article takes the misinformation to a new level. In "Ailing fund bail-outs hit € 3 billion," reporter Deborah Brewster claims, "Two other fund managers have suspended redemptions at money market funds." Speaking on "breaking the buck", she says "Many money funds have done so recently". These statements are both false. Like CNBC and WSJ, FT confuses enhanced cash vehicles with money funds. The article also mistakes total amounts purchased from funds with actual losses or "bailouts", which are a mere fraction of the total securities purchased."

In a previous article I wrote (Are your money markets safe?), I did seem to find two money market funds, not enhanced money markets that were bailed out by their parent bank so there is some stress in the money market world. But there is also quite a bit of confusion and misinformation being reported.