Money Market Funds Temporarily Safe Again

After a money market fund broke the buck, the government quickly guaranteed value of money market funds as of September 19, 2008 for three months, with a possible extension for one year.
U.S. News & World Report summarized the elements of the program in the article Money Market Guarantee Program FAQ. Here are what I thought were the key elements of the program:

The program is optional. Money market funds can choose to participate or not. It's important to check with each fund as to whether they are part of the program.

The account amount as of September 19, 2008 is the maximum protection. Money added after September 19 won't be protected. If money has been withdrawn after September 19, new additions up to the amount that existed on September 19 will still be protected.

While I think the guarantee program is helpful, I still think it's a good idea to continue to minimize risk for our cash equivalents. We will continue to move our money market funds to FDIC insured money market deposits for the short term.

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This is not financial advice. Please consult a professional advisor.

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