Money Is Hiding From Obama, Not From The Market

Jeff Cox at CNBC.com here, like most in the financial press, cannot understand that mom and pop no longer invest not because they do not trust the market, but because they do not trust the political leadership which is manipulating it:

[I]f investors are learning more, that education has taught them to flee the market.

Money market mutual funds, where investors typically park their money in times of duress before deciding where to deploy, has shrunk from just short of $4 trillion during the worst days of the financial crisis all the way down to $2.57 trillion, according to the Investment Company Institute.

But the lion's share of that money has gone not to stocks but to bonds. In the most recent week for which data is available, stock funds lost a stunning $5.3 billion while bond funds gained $7.5 billion.

All this, while the stock market has doubled gains off its March 2009 666 number-of-the-best intraday low.