Money Markets are not treasuries

Here is a Bloomberg article about the placement of money market funds into subprime debt:

http://www.bloomberg.com/news/marketsmag/mm_1007_story2.html

I don't know whether those figures count indirect exposure to subprime, but at $11 billion against $2.66 trillion, the money market business isn't likely to collapse soon.

What I found interesting was that money markets seem to be given the same risk considerations as FDIC insured savings accounts. The article said: "On Aug. 8, just after the Bear Stearns hedge funds filed for bankruptcy protection, U.S. money market fund total assets reached a record high of $2.66 trillion, with investors pouring $49 billion into such funds in one week, according to the ICI." This is a phenomenon to consider for the future. As people become more comfortable with savings account alternatives, money market managers may find themselves with far too much money to NOT play around. And if everyone treats these investment vehicles as nearly risk-free accounts, who watches the Watchmen?