How'd you like to be an investor in only the second (and third) money market fund to "break the buck." Yes, we decided we'd pass too.

The Reserve Fund, "the nation's oldest money market fund" has gone mostly-quiet for the many investors who's cash is anything but forthcoming, at least since it "broke the buck." A lawsuit lingers, allegations of tip-offs to large investors allowing them to get their money out before the crisis are floating around. We are sympathetic. To a point.

There is a reason these funds yield greater returns than other "cash or cash equivalent" instruments. Much of the financial consumer population has gotten quite complacent about the term "cash or cash equivalent." This, coupled with the deep rooted certainty that Americans are entitled to ever higher riskless returns, and enough sob stories might just cause you to forget that you are investing in a risky instrument. Seriously, folks. The Reserve Fund is in trouble because it had substantial holdings in Lehman debt. Oops.

It was only a matter of time before another money market fund broke the buck. You knew it could happen. It had once already. At the risk of going all Taleb on you, just because there hasn't been a collapse in recent memory, doesn't mean that one isn't right around the corner.

In the end, it is the free lunch that is most expensive.

Reserve Fund's Investors Still Await Their Cash [CNBC]