The next threat to American finance may involve money market funds, a heretofore stable financial strategy that could now be imperiled. The trouble started on Tuesday, when the country’s oldest money market fund, the Reserve Primary Fund, announced it was strained to the point where investors could not recoup all the cash that they had put in. The fund had issued $785 million in short-term loans …

Money-Market Rate Jumps the Most in 9 Years as Banks Hoard Cash (Bloomberg.com)
Sept. 17 (Bloomberg) — The cost of borrowing in dollars for three months jumped the most since 1999 as banks hoarded cash amid concern more financial institutions will fail.

Money-Market Rate Jumps the Most in 9 Years as Banks Hoard Cash (Bloomberg.com)
Sept. 17 (Bloomberg) — The cost of borrowing in dollars for three months jumped the most since 1999 as banks hoard cash amid concern more financial institutions will fail.

Bernanke Bets on Targeted Loans Over Rate Cut to Aid Wall St. (Bloomberg.com)
Sept. 17 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke is betting he can use targeted emergency loans rather than another interest-rate cut to pull Wall Street through the credit crisis.

(AFX UK Focus) 2008-09-17 09:07 UPDATE 1-Norway’s money market still tight, c.bank cash eyed (Interactive Investor)
OSLO, Sept 17 (Reuters) - Norway’s money market remained tight on Wednesday, dealers said, even as the central bank offered to inject more cash to help ease one of the country’s worst liquidity crunches in years. The market effectively froze on Tuesday, and Norges Bank injected $5 billion in fx swaps as well as 70 billion Norwegian crowns ($12.07 billion) in crown-denominated “F-loans”, its …