"SAFE" INVESTMENTS

I wrote below that the sub-prime mess may spread to money-market funds and that's now beginning to happen. The amount of money isn't alarming but how this will affect market psychology is another question.

Legg Mason Gives $100 Million, Credit to Money Funds (Update2)
By Christopher Condon and Miles Weiss

Nov. 12 (Bloomberg) -- Legg Mason Inc., the second-largest publicly traded U.S. mutual-fund company, propped up three money-market funds as a cushion against potential losses on commercial paper linked to subprime mortgages.

The Baltimore-based company invested $100 million in one of its money funds in October and arranged $238 million in credit to support two others this month, according to a Nov. 9 filing with the U.S. Securities and Exchange Commission.

Legg Mason, home to star stock-fund manager Bill Miller, is at least the third fund company to prepare to help out money funds that invest in SIVs.

SunTrust Banks Inc. in Atlanta received regulatory approval on Oct. 26 to support two money-market funds if they suffer losses on debt issued by Cheyne Finance LLC, which is liquidating.