The war on the United States during this election was on many fronts
(note: Sept 15, 2008 was Monday. He may have been refering to "Sept 18, 2008.")
"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 with $150 Billion.
But could not stem the tide.
It was an electronic run on the banks
The treasury intervened but had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawled and collapsed and within 24 hours the world economy."
Ping!
http://www.nytimes.com/2008/10/10/business/10markets.html?_r=2&pagewanted=2&fta=y
I thought maybe some of it was orchestrated, still wonder, but the train wreck had already started some time B4 this so then I thought maybe managers of MM funds were getting out plus short sellers, so I don't know.
He goes on to characterize this as a “panic”, but who was panicking ? Was it a panic, or was it a concerted attack? This seems to be the unstated question here.
Later.
were they removing their own money or was this a mass theft?
He said that the accounts were closed, and that they estimated that by 2 PM that afternoon, the US economy would have fallen. ...then the world, etc.
OK, here’s what happened that precipitated these events.
A couple of money market funds “broke the buck” — owing to the collapse of Lehman Bros. The funds had been playing rather fast and loose with their credit quality standards, and the NAV of funds that held 10’s of billions in $$$ fell to a few cents below $1.00.
OK, so what was the big deal? With what was happening in that timeframe, no one knew anything for certain any more. Money market funds are “supposed to bore the investor into a good night’s sleep...” — and suddenly, this assumption was put to lie.
Suddenly, no one trusted ANYTHING any more. When money market funds can’t return your capital whole.... it is time to get out of “cash equivalents” and into real cash, or sovereign debt (which is as close to cash as one can get without having Brinks trucks show up at your front door...)
The result was this run on money market funds, which resulted in huge spreads on investment-grade short-term commercial paper as the funds sold out as well as the huge buying surge into T-bills (culminating in their eventual negative yields a couple weeks later).
The Dem's will never demand a Congressional investigation.
That the Dem's will never launch an investigation should tell everyone all they need to know about this crisis.
this sounds like a)financial terrorism or b)outside influences creating an election influence. why are we only hearing about this now? who did the withdrawing?
How do we get to $5.5 trillion? Do the arithmetic. If withdrawals had continued at the same rate for three more hours, they'd have added up to maybe $2 trillion.
Again, better statement of problem needed.
Surprise. Surprise. Election2008 was stolen in so many ways.
This has the xtink of George Soros all over it.
The war on the United States during this election was on many fronts
bump
Ususal Suspects: Soros, Russian Mafia, Al Qaeda Operatives.
ping for later or should I say earlier read