The announcement Tuesday that the $62 billion Primary Fund "broke the buck," as its net asset value fell to 97 cents a share, is yet another bad omen for the global financial system.

The fact that this fund was sponsored by Reserve Management Corp., a New York cash management firm that prides itself on creating the first money market fund, is especially disconcerting. Though it has gone largely unnoticed, it is telling that the firm also announced there could also be a seven-day redemption delay in some cases.

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