Euro: safer than the dollar?

The dollar holds more risk than the euro, says this European portfolio manager. Surprise: your money market fund is holding European bank commercial paper, including banks heavily exposed to Greek debt. Prediction: The Fed will spend resources to prop up foreign banks to keep your money markets solvent.

H/t to Rocky Vega.

Update: ZH and Jim Grant have much more to say on this.

Grant: "The Fed has embarked on something new: to enforce the symptoms of prosperity [stock and bond market health] rather than prosperity." "Either it owns the stock market or the stock market owns the Fed." "We have exchanged the gold standard for the PhD standard, a very bad trade."

Safe to say that the member (owner) banks of the Fed have considerable stock and bond market exposure which the Fed's practices are designed to aid.