Jon Markman reports on one of the negative feedback loops threatening another credit crash as observed by Satyajit Das, here:
American money market funds, which manage around $1.6 trillion, historically invested around 40 percent, or $600 billion to $700 billion, with European financial institutions. Over the last few months, the money market funds have reduced their exposure to European entities. The funds have also decreased the term of their loans to the European entities that they are willing deal with to as little as seven days at a time, in an effort to limit risk, Das said.
