We had an electric run on banks for 550 billion?

[audtatious]

http://www.youtube.com/watch?v=pD8viQ_DhS4

Per Paul Kanjorski (starting around 2:10 above):

On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two. Money was being removed electronically.

The Treasury tried to help, opened their window and pumped in $150 Billion but quickly realized they could not stem the tide. We were having an electronic run on the banks. So they decided to closed down the accounts.

Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.

ooooooook?

[mattblancarte]

Read about this a few days ago. How you like them economic apples? Crisis of confidence, perhaps?

My money market account is worthless right now. It was about about 5.5% 18 months ago, and now it's at less than 1%.

[audtatious]

I would be curious to know where the draw down of funds came from.

[480sx]

(after auds quote)"Now we talked at that time about what would happen if that happened. It would have been the end of our economic and political system as we know it"

I thought a failed economy would be a more negative thing.

[audtatious]

I would assume if everyone "ran the banks" then there would be nothing left to sustain an economy in the first place. Hell, the money that people pull out would be worth nothing either.

Anyone want some money?



Just print it, it's what the Gov keeps doing.....

[smockers83]

This happened a long time ago, the money market collapse that is. This was when everyone was panicking when they saw money market rates drop to 1% and lower and people took their money out of those funds.

A collapse could have been very real. When you take money out of the bank, you reduce their capacity for money creation via loans, which spurs the economy.

[liquid_cool]

im calling "October Suprise" by the dems on this one....who knows..could have been that master of money making dem leftist supporter...George Saoros the billionare..who knows..or it could have been a forien power trying to weeken our economy at the time of an election to basicly choose the winner...good economy=republics..bad one= dems...just my 2 cents.

[audtatious]

This happened a long time ago, the money market collapse that is. This was when everyone was panicking when they saw money market rates drop to 1% and lower and people took their money out of those funds.

If that were the case, why not say so? Then again, it's not like I would believe what any of these fools say anymore anyway.

[Armelius]

http://www.youtube.com/watch?v=pD8viQ_DhS4

Per Paul Kanjorski (starting around 2:10 above):

On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two. Money was being removed electronically.

The Treasury tried to help, opened their window and pumped in $150 Billion but quickly realized they could not stem the tide. We were having an electronic run on the banks. So they decided to closed down the accounts.

Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.

ooooooook?

Nearly the exact same thing happened in the 30's when a Warburg was moving money out of New York to help pay settlers in Palestine for damages they suffered after Arab rioting.

[smockers83]

If that were the case, why not say so?

He did, he mentioned a date in September I think, which was around the time of that panic. I don't remember exactly when it happened, but it was around then. The initial panic may have been a little earlier.

I'm pretty sure this is what he's talking about.

[smockers83]

Did a little research. There was a panic in the money market on September 15, the date the representative mentions. September 15 is also the day Lehman Brothers went bankrupt. A lot of money market funds had exposure to Lehman Brothers, so this is the panic, draw down, and electronic run on the banks.

[audtatious]

He did, he mentioned a date in September I think, which was around the time of that panic. I don't remember exactly when it happened, but it was around then. The initial panic may have been a little earlier.

I'm pretty sure this is what he's talking about.

That's not what I meant. I meant why didn't they simply say so when it happened.

[smockers83]

My bad. You talking about that they should have told us that the economy could have collapsed? That would have panicked the whole country, and world, and caused a run on all deposits and US assets. The last thing you want to do in an economy that is suffering is instill more panic.

Just think of it. The news comes on, "In today's news, over a half trillion dollars has been withdrawn from money market accounts over the past few hours. Our economy could collapse if this continues."

Mass panic and hysteria around the world. Not good.

[audtatious]

The Treasury noticed this after 550B had been pulled out. They threw 150B at the problem and decided to shut things down when that did not work as they saw the possibility of 5.5T being pulled out "within 3 hours". It seems that "behind closed doors" this was the main issue that was being addressed and it should have been brought out to the public. The question remains "who initiated the draw"?

[smockers83]

The people who went to the court to file Lehman Bros for bankruptcy are the ones who started it all. This news gets transmitted to the market. Institutional investors and their money market managers get this news and since they are very large investors, begin to pull out their stakes in the money market. Money market managers all over get this news that's being transmitted throughout the market that these institutional investors are pulling billions of dollars out, so they start to panic and pull their stakes out. These managers also know that their money market accounts are exposed to Lehmans. If they don't know, they panic and follow the institutional investors, acting accordingly to whatever news they have that the manager didn't have.

[audtatious]

Maybe it's the way this has come out or been presented where it looks like a whole lot more to it than the investors pulling out, something all of us would have understood.

Of course, the far right is hinting at a Soros connection.

[liquid_cool]

Maybe it's the way this has come out or been presented where it looks like a whole lot more to it than the investors pulling out, something all of us would have understood.

Of course, the far right is hinting at a Soros connection.

.....ok..were has the money gone..if it was a money market fund..ie..mass amounts of 401k's and crap..then the money would have been reinvested corect?..or at least be in peoples bank accounts or investment accounts corect?..so where has the billions gone?..follow the money and we may see an answer to this..someone has it..it dinot just disapear...even in a market where people loose..someone is winning on the other end.Liquid_Cool <-----------not far rite..but far enough to see freedom again.

[Armelius]

.....ok..were has the money gone..if it was a money market fund..ie..mass amounts of 401k's and crap..then the money would have been reinvested corect?..or at least be in peoples bank accounts or investment accounts corect?..so where has the billions gone?..follow the money and we may see an answer to this..someone has it..it dinot just disapear...even in a market where people loose..someone is winning on the other end.Liquid_Cool <-----------not far rite..but far enough to see freedom again.

It's as if there never was a lock box on social security in the first place. Count that gone next.

Seriously, is there anyone here that thinks they will get social security insurance when it comes time to retire?

[audtatious]

My statements say I will but I'm not planning on it.

[Armelius]

My statements say I will but I'm not planning on it.

So if you live old enough and you don't, then that is called theft?

[audtatious]

Death benefit for the wife?

[liquid_cool]

So if you live old enough and you don't, then that is called theft?

wasent thet madoff guy the guy who had that ponzi thing...like robing from new investors to pay the old ones..while skimming off the top?...dosent this look familliar..like the SSI...rob from the young "TAX" to pay benifits to the old...and congress skimms off of the top..just see some simillaritys.

[Armelius]

wasent thet madoff guy the guy who had that ponzi thing...like robing from new investors to pay the old ones..while skimming off the top?...dosent this look familliar..like the SSI...rob from the young "TAX" to pay benifits to the old...and congress skimms off of the top..just see some simillaritys.

True but I have to congratulate whoever came up with the idea. It works for a time until it crashes. I know a few people now that have hardly paid into it and are collecting way more than they have ever dreamed.

I know I won't get a dime. It never keeps up with inflation anyways. Where are those people who wanted to put Social Security in the stock market. Now might be a good time to buy.

[liquid_cool]

True but I have to congratulate whoever came up with the idea. It works for a time until it crashes. I know a few people now that have hardly paid into it and are collecting way more than they have ever dreamed.

I know I won't get a dime. It never keeps up with inflation anyways. Where are those people who wanted to put Social Security in the stock market. Now might be a good time to buy.

wow man..your rite..now is a good time..tobad we cant do that with our 401k's now..seems the dems want to take them and play god with them..who was it..thats rite..tom dashing dashel who said.."americans just cant seem to tave,we can help them save by holding there 401k's and reinvesting them giving the arerican tax payer 5% over there lifetim return on the investment"...this scares the **** out of me!...5%....i hope this ones a joke.

[smockers83]

Death benefit for the wife?

$255, doesn't even cover flowers. It's been the same for 40 years.

It's as if there never was a lock box on social security in the first place. Count that gone next.

If anything goes next, Medicare and Medicade would be it. Not SS. SS is in much better shape than those. The problem with SS is that the government hasn't been able to control what's going out, regardless of the reason why it's going out (to the people or for other programs).

True but I have to congratulate whoever came up with the idea. It works for a time until it crashes.

It crashes when people rely on it too much and use it for what it's not supposed to be used for. Somewhere in the years, SS started to be thought of as retirement funds.

Where are those people who wanted to put Social Security in the stock market. Now might be a good time to buy.

Oh, you mean George Bush?