9/11/2008 CATASTROPHIC FINANCIAL TERRORIST ATTACK CAUSED ECONOMIC MELTDOWN

Atlas Shrugs ^ | 2/12/09 | Pamela Gellar

[FromLori]

The recent bombshell that Rep. Kanjorski dropped gets bigger and bigger. Atlas reader Suzanne picked up on a mindblowing "detail" in my blog post: "RIGHT BEFORE THE ELECTION OF PRESIDENT HUSSEIN: "A $550 Billion Electronic Run on the Banks". Paul Kanjorski describes the closed door session of Congress where it was revealed that there was a $550 billion electronic run on the banks and that was what caused the economic crisis. In the video, Kanjorski says this occurred on Thursday, September 15, 2008. September 15th was a MONDAY.

THURSDAY was .......SEPTEMBER 11, 2008

This was a Financial Terrorist Attack on the seventh anniversary of 9/11. Aren't the American people entitled to know who was behind the run on the banks?

Why was this kept from the American people before the most important election in US history? And why did Obama treat it as an unimportant incident - accusing McCain of grandstanding when McCain left the campaign trail and flew to Washington? Remember what President Hussein said? "They'll call me if they need me."

FLASHBACK: "Call me if you need me"

When President Hussein was campaigning and the "economic crisis" hit, he did not think it pressing enough to leave the campaign trail, but now we should push through a trillion dollars in legislation without oversight because a few weeks later the King deems it urgent?

[philman_36]

Here's another one for ya, O!
Run ends on money market funds
The rapid exodus from money funds began after The Reserve Fund announced on September 16 that shares in its primary fund fell to 97 cents due to losses incurred when Lehman Brothers declared bankruptcy.

A new angle with Lehman Brothers, Robert.

[Robert A Cook PE]

They've got the collapse happening even earlier!
The crisis: A timeline - Monday, Sept. 15 - The collapse
As traders sold off stocks on the weekend's dour news, rumors began to circulate that AIG was struggling to raise enough capital to fend off a downgrade.

---

Ah, yes. But if the “weekend's dour news” - which you quote as having affected the investors on Monday! - was the CAUSE of the collapsing pile of dominoes the rest of the week, then we have to look EARLIER than the weekend of 9/14 (Sunday) and 9/13 (Saturday) to discover what the “dour news” that was bubbling in the witches cauldron on Thursday (9/11) and Friday (9/12).

Which plays back to the original suspicion of a “triggering” event on Thursday (9/11).

[philman_36]

Still looking...
Shareholders in The Reserve Primary Fund Have Filed A Class Action Lawsuits
The complaint further alleges that by Friday, September 12, 2008, Lehman’s financial situation had become desperate; yet defendants continued to hold the debt obligations. Then on September 15, 2008, when Lehman Brothers Holdings filed for bankruptcy, defendants were still holding onto $785 million of its debt obligations, which were now worthless and furthermore by the afternoon of September 16, defendants had allowed about a dozen institutional investors to withdraw a total of over $40 billion from the fund, at the “net asset value” price of $1.00 per share, so the lawsuit.

Reserve Fund Accused of Securities Fraud in Giant Money Market Fund
According to Ameriprise's complaint, agents of Reserve Fund secretly warned select major institutional investors that the fund was at risk of "breaking the buck", or dropping below $1 per share. Ameriprise argues that prior to the notification, the fund contained $64 billion in assets, which dropped virtually overnight to $23 billion, purportedly due to redemptions by institutional investors who were tipped to the problem. By alerting the institutional investors prior to public disclosure, the institutional investors were able to avoid losses, leaving retail brokers and their customers -- who were in the dark -- holding the bag.

Institutional investors, eh?

[XenaLee]

I originally heard it was actually on 9/15, a Monday. We in Houston were suffering from Hurricane Ike and most of us, myself included, were dealing with no electricity and ergo, no cable or satellite TV with which to get any ‘real’
news. I smell George Soros’s stench all over this one. George AND the DemocRat traitors to America.

[philman_36]

And I'm coming close to the 550 billion figure...
Fed to Provide Up to $540 Billion to Aid Money Funds (Update6) Oct. 21
The $62.5 billion Reserve Primary Fund announced Sept. 16 that losses on debt issued by Lehman had reduced its net assets to 97 cents a share, making it the first money fund in 14 years to break the buck, the term for falling below the $1 a share that investors pay.
Institutional investors have since pulled $341 billion from funds that can invest in corporate debt, or 28 percent of assets in those funds.

...which is reported here on Oct. 21 yet Kanjorski was on C-Span on the 27 of Sept. and gave a number even higher than the one listed here.

[philman_36]

More money to account for...
Putnam Liquidates $12 billion Prime Money Market Fund
The Board of Trustees of the Putnam Funds, one of the nation’s oldest and largest management firms, has suddenly voted to close a $12.3 billion prime money market fund, effective as of 5:00 p.m. on September 17, ‘08, and distribute all cash to investors.

[philman_36]

Lehman Brothers Holdings Inc.
On Sept. 10, the investment bank said that it would spin off a majority of its remaining commercial real estate holdings into a new public company. And it confirmed plans to sell a majority of its investment management division in a move expected to generate $3 billion. It also announced an expected loss of $3.9 billion, or $5.92 a share, in the third quarter after $5.6 billion in write-downs.
By the weekend of Sept. 13-14, it was clear that it was do or die for Lehman. The Treasury had made clear that no bailout would be forthcoming. Federal officials encouraged other institutions to buy Lehman, but by the end of the weekend the two main suitors, Barclays and Bank of America, had both said no.

LEH stock September 11, 2008
Stocks pulled off their lows Thursday but fluctuated in choppy trading as investors, still anxious about financials, pumped money into the materials and transportation sectors.
Investors dumped Lehman Brothers Holdings Inc. (LEH) stock and some other financial names, worried that it is becoming harder for them shore up their balance sheets.

[blueplum]

well add into all of this Obama’s quote on 9/15, which struck me as extremely odd, in hindsight, almost a Biden-moment - as I’ve asked before, how would he know, at that point in time, to use the phrase ‘great depression’?:

U.S. Democratic presidential candidate Barack Obama said eight years of Bush “brought us the most serious financial crisis since the Great Depression.”

source: CNN 9/15/08
http://edition.cnn.com/2008/BUSINESS/09/15/lehman.merrill.stocks.turmoil/index.html

[philman_36]

Rather off the beaten path, but...
Market Crash Forecast Suggests New 9/11
A mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style catastrophe could take place within the next month.
The anonymous trader only stands to make money if the market crashes by a third to a half before September 21st, which is when the put options expire. A put option is a financial contract between two parties, the buyer and the writer (seller) of the option, in which the buyer stands to benefit only if the price of the asset falls.

[philman_36]

Oops...that last was from 2007, not 2008. I was looking for the original article.

[philman_36]

Even the court filing against THE RESERVE FUND
...doesn't list who the institutional investors are.

[proudmilitarymrs]

bump for later read

[jwparkerjr]

Rest assured there is going to be tremendous pressure from the MSM/Liberal cabal to declare this whole issue just another Right Wing Conspiracy. Watch out.

[jwparkerjr]

re: I think Obama and Soros engineered the whole thing in order for Obama to win the election

I would sooner think that Obama is just another tool in the toolbox of whoever did this. Someone is pulling the strings and Obama is just on just one more string, along with all sorts of political and financial tricks and maneuvers.

Whoever is doing this is making it very difficult to separate the strings being pulled from those pulling the strings.

[Mad_Tom_Rackham]

Bush certainly wasn’t going to walk away from a “financial meltdown” in the last weeks of his term. This was more than conveniently timed. Who stood to benefit? The NWO cabal?

[Robert A Cook PE]

Well, without the Lehman Brothers’ fall - which triggered the next six weeks of emergency “Wall Street bailout” maneuvering leading to the first vote on Socialism 101, Obama would not have been able to (1) get in power and (2) put Pelosi in position to get Socialism 102 passed.

Without this event, McCain wins. He (Obama) owes everything to whatever/whoever pushed the button (pulled the strings ?) on Sept 9-10-11-12 on Wall Street.

[Mad_Tom_Rackham]

Yes, and I don’t think any of that is coincidence.

[philman_36]

Too funny...
Fannie and Freddie's woes no big threat to money market funds Sunday, July 20, 2008
And if circumstances put a money fund into break-the-buck territory, industry watchers say management will bail it out. No fund firm that wants to stay in business would suffer the embarrassment - or resulting rush for the exits in its other funds - from having a money fund fail. There are countless cases over the past 15 years of firms buying back troubled paper from their money funds to ensure that retail shareholders avoid a loss.

All is well! Just ask Bawnie Fwank.
Sometimes you don't know whether to laugh or cry.

[philman_36]

Some of the wording in this article is almost the exact same as that used in the previous article.
This is rich...
Debunking money market fears
Again that's no guarantee for the future. If conditions in the credit markets deteriorate to Armageddon-like conditions, I suppose anything could happen. (Although, for what it's worth, my assessment is that Fed chairman Big Ben Bernanke, while understandably reluctant to take precipitous action, will do what it takes to prevent any sort of all-out meltdown in the financial markets.)

Snip...But I think the possibility of a money fund breaking the buck is extremely low and the chances of money fund investors taking a loss are even lower. So I think the last thing you want to do is panic, or for that matter even spend your time obsessing about this. At least I know I won't.
Maybe he should've obsessed.

New line of thought from here from checking up on later "thoughts" by Walter Updegrave......the investments allowed us in my union retirement account.
My total account is sitting in their money market fund – which one would hope is safe. However, the investment bank has had to prop-up the fund with millions of dollars to keep it from “breaking the buck.”

[philman_36]

My how interesting the rabbit hole is...
This...Chinese Foreign Investment: Insist on Transparency
As for CIC,the financial crisis did reveal a multi-billion dollar placement with an American money market fund that likely reflects much more money placed by all Chinese institutions.
Led to this...
Let Them Eat Subprime: Chinese SWF Down $5.4B Tuesday, October 14, 2008
I find it utterly unremarkable that China's sovereign wealth fund, the China Investment Corporation (CIC), has had $5.4B frozen in a money market account gone bad. Sometime ago, the Reserve Primary Fund caused much turmoil among money market funds when it "broke the buck" or had its net asset value (NAV) fall below 1.00. It turns out that it had invested in Lehman Brothers debentures--not a very wise move. Now, the Financial Times reports that the Reserve Primary Fund's largest institutional investor is none other than the CIC.
Snip...Stable Investment Corp, which is registered at , held 11.1 per cent of Reserve Primary’s shares, or around $5.4bn worth, at the start of September.

It makes you wonder if the institutional investors who got the heads up were the Chinese as the numbers given are close. The "bank run" was $550 billion dollars (5.5bn) and amazingly enough the amount the Chinese had invested was 5.4bn.

Was the Chinese pull out, with advance knowledge, be the plurality of the bank run with only smaller investors making up the remainder?
Who knows.