Great economist and researchers have drawn out an analogy between the liquidity problems that took place in the year 2007-2008 and that of a traditional bank run. This analogy is presented with securities such as asset backed commercial paper with that of how a bank traditionally runs out. It is that an asset based commercial paper faces a decline in the price or a loss when the lenders who can also be treated as depositors in a bank are not ready to refinance such commercial paper when the formers comes nearer to its due date. The exact meaning of a ‘run’ is that the bank is unable to issue any new security be it even a commercial paper despite considering the fact that there is minimum ten percent of the commercial paper at the stage of maturing. As long as the crisis condition of the liquidity problems in the year 2007 and 2008 is concerned, it was seen that there were a lot of instances of run in the market especially during the month of August in 2007 (Gorton and Metrick, 2012).It was then noticed that by the end of the year 2007, around 40 percent of the programs were in a situation of run and in such a weak condition that they could not refinance themselves in the short term market. One major advantage that the asset backed commercial paper provides is that of cross-sectional analysis on the determinants of run. Such a detailed analysis is hardly visible any time as long as a bank run is concerned. The asset backed commercial paper analysis shows that any financial program is more likely to show its positive results if there is high credit risk present instead. Therefore, it was noticed that runs are more vulnerable to the fundamentals of the financial market whereas the investors are not even sure whether they are investing in a strong market or even a weaker program. This incidence which took place and has been discussed as an analogy between the two has also seen an expectation that the MMFs would always be backed by their own sponsors. MMFs are basically a super safe money instrument that needs no due diligence from its investors (Gorton and Metrick, 2012).