Posted on 02/11/2009 10:55:18 AM PST by TruthHound
This was the day the Reserve Fund (among others but they were the only one to stop payments broke the buck). Lehman Brothers bankruptcy meant these huge Money Market funds did not have enough good paper on hand to pay their clients. The other funds covered the losses, but it was dicey for awhile.
I remember thinking that President Bush appeared not to be himself during all of last fall’s economic crisis.
I want our money back!
I posted this story late last night and I think there’s parts to the story people are missing that I posted in the reply. These parts...
Ok I have been doing a little research and I posted some other articles one was The Chance for a New World Order I found in the Herald Tribune written by Henry Kissinger so I started looking at connections between Kissinger and Soros and oh man what I found! Not only those two but connections to Clinton, etc. check these out what do you think?
URL Source: http://www.iht.com/articles/2009/01/12/opinion/edkissinger.php
http://www.questionsquestions.net/docs04/engdahl-soros.html
http://www.aim.org/aim-column/the-big-money-behind-geithner/
http://theendrun.wordpress.com/2009/01/27/clinton-quigley-and-the-new-world-order/
19 posted on Wednesday, February 11, 2009 1:30:13 AM by FromLori (FromLori)
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RIGHT BEFORE THE ELECTION OF PRESIDENT HUSSEIN “A $550 Billion Electronic Run on the Banks”
Atlas Shrugs ^ | 2/11/09 | Pamela Gellar
Posted on Wednesday, February 11, 2009 12:52:20 AM by FromLori
This is un-frickin-believable. The financial crisis was deliberate, planned, staged. Who made the run? “Someone threw us in the middle of the Atlantic ocean without a life raft. We are trying to determine which is the closest shore and whether there is any chance in the world to swim that far. We don’t know.”
Video at site
(Excerpt) Read more at atlasshrugs2000.typepad.com ...
Ping
What’s scary about this to me, is the deafening silence of the MSM. We all know they’re libs, but they had to know this was going on & kept quiet about it.
He is writing a book. Maybe he’ll talk about there.
Ping.
We need to march and demand answers!
just-when-I-thought-it-could-get-worse-PING
Can he pull 500 billion out of MMs?
If so, where did it go?
Will it be coming back at the right time?
Smart people like me called our brokers and bought t-bills in a flight for safety because we didn't want to wake up the next day and find out the money funds were frozen up. T-bill rates dropped close to zero. Money funds have to sell securities to raise cash for redemption and this crushing sell order volume by the funds could freeze the market.
So, while I love to blame George Soros for everything (and I think he was somehow involved because he made his first billion $$ doing this to the British pound)< I think the stampede to t-bills was the reason the MM funds saw sucha huge withdrawal that day.
This could happen again, especially with ol Floppy Ears running around the country preaching doom and gloom in an effort to get his emergency communist program passed by a clueless Congress and a complacent media.
It was money market funds, primarily, acting in aggregate.
Now this is erie.
http://www.youtube.com/watch?v=xjf7pbyOOEE
Imagine George Soros as Gordon Gecko (Michael Douglas) and Obama as the Sheen chump.
OK, not to piddle upon the NWO conspiracy parade here, but to attribute this to some dark conspiracy when there are explanations that are based in easily documented reality is absurd.
As a result of the Lehman implosion, a couple of money market funds here in the US “broke the buck.” There was another money market fund used by hedge funds in Europe that broke the buck earlier in the year.
The Reserve Primary Fund had a $700+ million write-down of Lehman paper, which resulted in their NAV going to $0.97/share. The Reserve Primary Fund was worth about $60B, and the Reserve International Liquidity Fund had yet more.
OK, so why would this cause a run like this? To discover that one of the oldest money market funds in the US, with assets over $50B, has suffered such a loss as a result of Lehman, and Lehman was one of the largest dealers in the world of commercial paper, and money market funds invest in short-term government and AAA commercial paper... suddenly, people start to panic. They don’t know who is exposed to Lehman’s paper. They don’t know what that paper is worth.
There had been the auction-rate paper scandal earlier last year, where it turned out that the market for the paper was highly dependent upon the broker/dealers making market in the paper, and here Lehman has just gone down in flames.
There is no doubt in my mind that thousands of fund managers, brokers, banks, you name it all came to a collective decision following the implosion of Lehman on September 14th to September 15th: sell first, ask questions later. Because in this type of situation, the last one to sell is the one left holding the bag.
There were huge outflows in money market funds all over the market. No one person could have put together those withdrawals. No how, no way. It was a case of thousands upon thousands of fund managers, brokers/dealers, asset management firms, you name it — all seeing the problems caused by Lehman’s collapse on Monday morning (9/15) and they just started pulling triggers. They didn’t care, they didn’t think, they didn’t ask for details. All they knew was that there might be exposure to Lehman’s book, they wanted none of that exposure, that it could cause them serious losses.... so triggers were pulled, sell orders sent, and you get what we had.
Where is the outrage indeed. 0 is keeping us focused on this bailout and sidestepping a very serious issue.
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