"A $550 BILLION ELECTRONIC RUN ON THE BANKS" (This Economic Meltdown Was Engineered, Folks!]

AtlasShrugs ^

[TruthHound]

RIGHT BEFORE THE ELECTION OF PRESIDENT HUSSEIN: "A $550 BILLION ELECTRONIC RUN ON THE BANKS"

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."

Electronic Run On Banks - $550 Billion Withdrawn In 1 Hour, Federal Reserve Halts Withdrawals - US Economy Would Have Collapsed Capitalism Gone Wild hat tip Cathy

Rep. Paul Kanjorski of Pennsylvania explains what former Treasury Secretary Paulson and Fed Chairman Bernanke told congress during the September 2008 closed door session. During the first third of the video an enraged caller is ranting to Rep. Kanjorski about how wasteful the first $700 billion bailout was. The best part is 2 minutes and 15 seconds into the tape where Rep. Kanjorski reveals what Paulson and Bernanke told congress that shocked them into supporting the first $700 billion bailout.

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 $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.

Kanjorski also explains why Paulson spent the bailout money differently than he originally proposed.

Some other gems from the recording:

It would have been the end of our economic and political system.

We would have had to spend 3 to 4 Trillion dollars to buy up all the toxic assets. But we didn't have that much we only had 700 Billion.

Without a banking system you don't have an economy.

We are no better off now than we were three months ago.

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.

More to think about. Somebody took a lot of money out of the banks. A lot.

So where did it go? Who to? And who got it? When? And where?

Somebody knows. Those transactions have been investigated, and somebody knows. But they ain't talking, are they?

John Jay posits - there has to be a reason why: --this hasn't been heretofore revealed --why those who received the deposits haven't been identified --why there is no explanation for their motives, and --why this has just now been revealed.

The motive part is very interesting, isn't it? Now, a person does no wrong, in and of itself, by taking his money from his accounts, perfectly legal, and absolutely unpreventable by any means other than the government shutting down or closing the market, as it did, to prevent/stop the run.

A run is a banker's term of art, and it is like a herd stampede, or panic, or a psychosis of a lot of people.

They say 4 or 5 trillion dollars could have been emptied out of the bank by the end of that business day. Presumably, it could not have gone all to one entity, else that entity just could have gone back when the markets opened, and continued to withdraw funds. So, if it were designed as action to induce a panic, it had to have been done in a way that the new would spread quickly, go "viral" as it were, to others holding funds or control over funds in similar banking institutions/markets. So, the transaction had to be public, or at least traceable, because they had to be noticeable, and they had to instill a panic so that the run would continue, and people would be noticing what was happening and would move to preserve and protect what money they could access.

So, it wasn't silent.

It wasn't stealth.

Just the opposite. It had to be noticed, to work, to induce the panic in the number of people required to induce the panic.

So, the people who do such things, who monitor who and where the orders come from, and who keep track of whose accounts the money is taken from, have to have been able to figure that out, and who was responsible.

Yet, they do not tell us.

Why?

They should be able to.

There is one more context. People where really abuzz trying to stop this latest round of Obama legislation, and considerable heat was being brought to bear on this.

Obama & his minions choose this C-span broadcast/interview, complete with screaming put-upon lady, so that Rep. Kanjorsky (Democrat, Pennsylvania) can tell us all just how close we came to financial panic and collapse, no doubt to stir us to support for Obama.

Can there be any other reason for it. Seems to me, you'd kinda want to keep a lid on it,just like everybody did.

Now, the other question that comes to my mind, is just when the Republicans went into the tank on the republic election. It is too bad we don't have the collective memory to remember just when McCain officially threw in the towel, and whether it had any connection to this. He most assuredly would have known. Palin most assuredly would not have, in all likelihood.

The Wall Street boys knew.

The regulators, the Federal Reserve knew, and nary a boo, peep or squeak out of any of 'em, until now.

A Congress that can keep a secret? Pretty unheard of in this day and age. but, up til now .... .

So, why bust the news now?

And while I do not pretend to be on the inside of any of these nefarious machinations - it can't help but raise a red that the US treasury department, one week after nationalizing the banks, is giving seminars in Islamic finance and George Soros is buying our assets from the FDIC.

And WTF did Chuck Schumer know and when did he know it? Look Who's Buying IndyMac Larry Johnson, American Thinker

The FDIC has just announced that a consortium of private equity and hedge fund firms would be buying IndyMac. IndyMac was an independent "bridge bank" spun off of Countrywide Mortgage in the late 90s. IndyMac acted as a "bridge bank" to Fannie Mae and Freddie Mac. New York Democrat Charles Shumer precipitated the fall of IndyMac in May of 2008 by releasing "inside" information that the mortgage company was in dire financial straits. This disclosure created the initial "bank run" that is credited by many economists as the initial trigger that prompted the current mortgage crisis. The FDIC took over the operations of IndyMac in late summer of 2008.

So much for history. George Soros is in on the deal to buy IndyMac from the FDIC. Soros has a long history of making loads of money by first creating a financial crisis and then stepping in to grab up the bargains. Perhaps the most famous example of this tactic is "Black Wednesday," when Soros nearly sunk the entire economy of Great Britain through currency speculation.

George Soros has helped bankroll the campaigns of the Democrats in Congress who created this mess. Now, it appears, he is cashing in on his investment.

[sharkhawk]

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.

[madinmadtown]

....And Obama stayed on the campaign trail. He was sooo cool about this, far too cool in retrospect. Now that we know a little of what happened, if Obama had any serious concern about our country, he would have dropped the “cool” and been a little more flustered as McCain was.

[pax_et_bonum]

I remember thinking that President Bush appeared not to be himself during all of last fall’s economic crisis.

[libsrscum]

I want our money back!

[FromLori]

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 ...

[stockpixx]

Ping

[orlop9]

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.

[jennyjenny]

He is writing a book. Maybe he’ll talk about there.

[antceecee]

Ping.

[libsrscum]

We need to march and demand answers!

[Ticonderoga34]

I remember thinking that President Bush appeared not to be himself during all of last fall’s economic crisis.

I remember thinking that too. Every time Bush answered questions about the crisis he didn't appear confident or acted like he believed what he was saying. At least that was my impression.

If you go back and look at the polls, McCain was beating Obama before the banking crisis. Afterwards, McCain trailed Obama and ended up losing the election.

[DoughtyOne]

This information on the Soros McCain connection is just one of the reasons I will never vote for McCain.  Anyone who could be cozy with these people is someone I don't want anywhere near our government.

2001/00/00 McCain founded the Reform Institute funded by George Soros' Open Society Institute, Teresa Heinz Kerry's Tides Foundation, several other non-profits.  CapnsQtrs  Malkin WND  Contains information on Juan Hernandez and numerous McCain Campaign staff from 2000, that found potitions at the Reform Institute  Contains information on who funded McCain's efforts on Campaign Finance Reform, Comprehansive Immigration Reform and a number of Global Warming bills listed in this timeline

[RushIsMyTeddyBear]

just-when-I-thought-it-could-get-worse-PING

[Conservativegreatgrandma]

And all signs point to Soros. I said months ago he orchestrated this meltdown for the sole purpose of getting Obama elected.

Can he pull 500 billion out of MMs?

If so, where did it go?

Will it be coming back at the right time?

[April Lexington]

If I remember correctly, the 'government' was warning that the credit markets were freezing up and that money market funds could break the buck.

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.

[steve86]

Right wingers blaming Soros for this kind of thing is every bit as loony as left wingers blaming Cheney for everything.

It was money market funds, primarily, acting in aggregate.

[TruthHound]

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.

[NVDave]

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.

[sarasota]

Where is the outrage indeed. 0 is keeping us focused on this bailout and sidestepping a very serious issue.

[April Lexington]

If so, where did it go?,/I.,P. I suspect most of the money that day went to T-bills and that's what drove the interest rates to close to zero. The stock market was falling at the same time so investors would not be buying stock to preserve capital. My bet is T-bills for safety.