SEC looks into yet another venture; Market Funds!

Implications: If market funds are some what of the most conservative investments why microscope them? The SEC's recent investigation into market funds may confirm what many financial investors already knew, if the market spirals downward expect the signal flares to go up!  

Analysis: The spark into more investigations may be another chicken little, closing the door after the horses are out or even a valiant effort at cleaning house after the fact.  Nonetheless, definitely better late than never.  Our democracy is still built on a some what solid system of checks & balances.  A careful eye every once in a while may help ensure the I's & T's have been crossed  Investigations and audits may certainly be tedious and at times expensive and time consuming, but history has taught us to every so often get back to the basics. The SEC's recent look into market funds may be coincidentally tied to the sub prime debacle and/or Enron, however, it is part of what needs to be done ever now and then. Is it really unreasonable to request information from mutual-fund companies about how they value and assess their money-market fund holdings? It may be based on an old saying that locks sometimes keep what some perceive as the honest out.  There are many gray areas and interpretations in following SEC mandates (See generally for more information on Market funds  http://www.ici.org/home/faqs_money_funds.html)  As some would say there is a fine line between tax savings and tax evasion.  Is the ultimate issue that the cost to the market funds in having to go thru this investigation is simply going to be at some point passed along to the consumer.  That could be the ultimate catch 22.  This is one probe that may warrant a grin and bear it and who knows maybe this sweep will yield some benefits to fundholders?