Interesting. I thought it was the following Thursday on Sept. 18th.
I think this information is interesting when you couple it with the little reported news item that the IMF computer systems were hacked in July/August. Was someone trying to find out how big of a withdraw would be needed to pull down the economy?
HS. First, if we have a system where there can even be a $550B electronic run then we have had a disaster waiting to happen. Second, the underlying problem of high leverage on trillions of malinvestment was another disaster waiting to happen. A large fraction of the economy dependent upon making gazillions off of leverage that should never have been allowed to exist in the first place set us up for a big fall.
It doesn’t get any less incorrect the more times it is posted.
Uh, it’s not a big secret folks.
Lehman Brothers failed, and the instead of doing what was done with Bear Stearns and every other giant superbank before and after, the Government didnt guarantee it’s bad paper, didnt put it’s assets into FED temporary holding, and didnt fold it into another giant superbank.
They let it file chapter 11.
It brought down Merryl and tanked bank stocks worldwide and there was an actual avalanche at the bank of USA withdrawel window, systemwide. The FED stepped in and replenished the money by expanding its balance sheet into the trillions.
They tested what would happen if a giant superbank was aloud to fail. The answer was a giant bank run.
After this, they poured 300 billion into a few banks. Lehman would’ve cost 30 billion and was aloud to fail to stress test the system.
Rich people are converting their bad bonds into the cash that these banks are getting.
They are giving us their worthless paper in exchange.
They are handing us their gambling debts.
It is obscene.
Interesting article and thread. Thanks to all.