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]

I don't see any relation between 911 and the money market attack that broke the buck.

I'll transcribe what the man said and you can follow it on the video starting at 2:08 into the clip.

Look, I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th. Here's the facts, and we don't even talk about these things. On Thursday at about 11 o’clock in the morning the Federal Reserve noticed a tremendous draw down of money market accounts in the United States to the tune of $550-billion was being drawn out in in a matter of an hour or two. The Treasury opened up its window to help and pumped a $105-billion into the system, and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

Now, since he states that the Secretary and the Chairman of the Federal Reserve came to talk with members of Congress on about September 15th and that the bank run happened on Thursday the bank run he mentions would have in fact have happened on September 11.
How can you not see any relation?

...the money market attack that broke the buck.
You do know that breaking the buck is when a money market's funds net asset value falls below $0.995, don't you? How could the money market attack be breaking the buck?
A very confusing response you have there.

[Robert A Cook PE]

So, where did that 1/2 trillion dollars go?

Who pulled it?

[philman_36]

Wikipedia? Come on. As a former member of The Military Book Club, (ahem) way back when, I read At Dawn We Slept.
And speaking of that particular book...
Institute for Historical Review - Pearl Harbor: The Latest Wave
The opening shot was the release in November that year of Gordon W. Prange's massive At Dawn We Slept: The Untold Story of Pearl Harbor.

[philman_36]

So, where did that 1/2 trillion dollars go?
Who pulled it?
Some interesting questions I would like to know the answers to myself. Unsurprisingly I've not found any answers yet, though I seem to have found a new search hobby/interest.

That was an inside joke...don't ask.

[Obamageddon]

The event he described happened on Thursday September 18, 2008.

[Obamageddon]

Almost Armegeddon

That article was posted on 21 Sept and it refers to the previous Thursday. That and the Official Notice of the program from Treasury is proof positive of the date of the meltdown, September 18, 2008.

I'm not easily brow beaten.

[philman_36]

Learning some and defining the time frame, since it's confusing so far.
Money-Market Fund That 'Broke Buck' Took Risks Wednesday, September 17, 2008
But on Tuesday, a money market fund called Reserve Primary Fund “broke the buck,” just the second time in the 35-year history of money market mutual funds that a fund had seen its shares fall below $1.

Money market breaks the buck, freezes redemptions Sept. 17, 2008
The size and speed of the withdrawals was stunning. At 3 p.m. on Tuesday, Primary Fund's assets stood at $23 billion, a $40 billion hit from the $62.6 billion in the fund on Friday, a spokeswoman for The Reserve told MarketWatch late Tuesday.

That sure isn't 1/2 trillion dollars. Nothing but more questions.
And "marked to market" is explained...Chuck Jaffe: When money fund 'broke the buck', here's what happened

WHOA!
Reserve Fraud Started After SEC Call, Galvin Says (Update2)
Around 1:15 p.m. on Sept. 15, (that was a Monday) Bent, president of New York- based Reserve Management, talked with the U.S. Securities and Exchange Commission about propping up the Reserve Primary Fund. The $62.6 billion fund was close to collapse because of investments in debt issued by Lehman Brothers Holdings Inc., which hours earlier had filed for bankruptcy.
At 1:19 p.m., when that conversation ended, Bent sent an e- mail to Reserve executives that said SEC approval for a bailout was imminent, the state said in the filing. No such plan was in place. Still, the message spread, with salespeople using it to persuade investors not to abandon the fund, the complaint said.
The next day, Reserve Primary became only the second money fund to break the buck, or fall below the $1-a-share price paid by investors, triggering an industrywide run that helped freeze global credit markets.
Snip...Money funds, which oversee $3.85 trillion, promote their safety and yields that are usually slightly higher yields than bank accounts and Treasury debt.

It looks like a bunch of people/companies got their money out of Dodge.
And it appears that it happened on the 16th of September.

[Obamageddon]

Here is a CNN transcript of the events of September 18 in the Money Market meltdown.

..."ALLAN CHERNOFF, CNN SR. CORRESPONDENT: That's right. The Federal Reserve this morning, in three separate operations, has injected $105 billion into the financial system, into the banking system. This is a record amount in one day, even greater than the $81 billion that the Fed injected following September 11 after the attacks. So this -- this is really a big move by our central bank to try to keep the wheels of finance turning.

Now, what's been happening is that banks have been so nervous, they haven't been lending, even much to each other. And so this is overnight funding that the banks will have. They, in turn, have given the Federal Reserve treasury securities and also debt backed by Fannie Mae and Freddie Mac. They make a trade overnight. And so these institutions now have lots of capital. They can use that capital to lend to each other. Ultimately, the idea is that we want to see the banks lend to corporations, lend even to individuals, like ourselves.

I just got off the line, though, with Brian Fabbri, a veteran economist at BNP Paribas, who's followed the Fed for years. And he says he thinks this may not be enough yet to get that lending going to consumers, to corporations. Still a very big problem for all of us."...

There is the $105 billion that the Congressman referred to in the CSPAN interview.

Money market breaks the buck, freezes redemptions ON SEPTEMBER 17, 2008.

[philman_36]

I'm not easily brow beaten
Why do you assume I was trying to brow beat you? The information I had at hand at that point indicated it was the Thursday prior to Sept. 15, which was Sept. 11.
That and the Official Notice of the program from Treasury is proof positive of the date of the meltdown, September 18, 2008.
I'm still finding stuff out myself and you're not right on the date either. According to the article I just found and posted above from Bloomberg.com it started on the 16th, not the 18th.

[philman_36]

Money market breaks the buck, freezes redemptions ON SEPTEMBER 17, 2008.

"Whoa there, tough guy!" /Jim Duggan
You're giving me links to what I've already linked to.
I'm not easily brow beaten myself.

[chuckles]

I'll just put my 2 cents in on the money market comments. I have an online broker account that pays me interest on my money while not invested in stocks. It was paying about 3-4% for most of the Bush term. Then, out of the blue, they moved our money to a cash account that pays almost nothing. When I complained about it, they explained that the realestate mess was endangering Money Market funds. I had no idea that Money Markets are almost 100% in real estate backed instruments. About a month and a half later, the run on the banks. Thank God, they got me out. I heard stories of people asking for their money and they got IOU’s. It was in the fine print of my trustee agreement where I found the names of the banks and instruments the Money Market was invested in. About 70% was backed by real estate CMO’s. Other names were bank bonds that had trouble with real estate securities. That was when I started to realize just how serious the problem was, when AAA bonds were worthless.

[Obamageddon]

The date of the events that Congressman Kanjorski is referring to in his CSPAN interview is September 18, 2008. That is the day of the actual meltdown. That is the morning that 550 billion in Money Market Fund withdrawals had to be stemmed by the fed and the Treasury.

As to the cause of that meltdown, it may have stemmed from a crisis of confidence caused by The Reserve Fund breaking the buck in previous days.

But there is no correlation between the meltdown and the events of 9/11/2001, as the Atlas Shrugs article implies.

[philman_36]

That and the Official Notice of the program from Treasury is proof positive of the date of the meltdown, September 18, 2008.

You keep pushing that it happened on the 18th when even the article which you later linked (Money market breaks the buck, freezes redemptions ON SEPTEMBER 17, 2008) which I even snipped in my reply says...
The size and speed of the withdrawals was stunning. At 3 p.m. on Tuesday, Primary Fund's assets stood at $23 billion, a $40 billion hit from the $62.6 billion in the fund on Friday, a spokeswoman for The Reserve told MarketWatch late Tuesday.
That's the 16th, not the 18th.

Pardon me while I snicker.
snicker

[philman_36]

But there is no correlation between the meltdown and the events of 9/11/2001, as the Atlas Shrugs article implies.
After further study on my part I will agree with you on that and concede that my earlier assumption was incorrect.
Do you admit that it happened on the 16th and not the 18th?

[philman_36]

I'm glad to hear you got your money out in time and didn't lose your shirt over it.
The real estate situation had been brewing for years and this could've been avoided.

[Obamageddon]

I am pleased thst you are learning that the actual date of the meltdown that Congressman Kanjorski referred to in his CSPAN interview was September 18, 2008. It was not September 11, 2008 as the Atlas Shrugs article states.

She should pull or correct and rewrite that article.

P.S.: Glad you are learning about the Reserve Fund breaking the buck. Isn't Free Republic a great place to learn facts!

[Robert A Cook PE]

Keep looking - BOTH of you ... 8<)

The people who did this - and I, personally, don't accept the “mindless stampede” theory of markets “simply following the economy” in this case - did not act in one day, nor did they need to try to make anything special about any particular Sept 11 anniversary.

Like Soros’ manipulation of the British and East Asian markets (for profit in that case - not power/political policy/socialism/abortion/anti-Christainity/anti-democracy/etc as in this case), there are lots of good motives and opportunities for the circumstantial evidence to stand up.

Look for motive.
Method.
Opportunity.

[philman_36]

I am pleased thst you are learning that the actual date of the meltdown that Congressman Kanjorski referred to in his CSPAN interview was September 18, 2008.
LOL...You're a riot.
That's just it, the actual date of the meltdown was September 16, 2008 (or even earlier as I'm fixing to show) as one of your links even states.
And since you like CNN as a source then use this one...
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.
The crisis: A timeline - Tuesday, Sept. 16 - The Fed steps in
The crisis: A timeline - Wednesday, Sept. 17 - Another free fall
Investors gave an enormous thumbs-down to the AIG news, sending stocks plummeting, while traders piled funds into safer havens. Gold rose $70, a new record. Oil rose $6, its second-largest jump ever. And the yield on the three-month Treasury sank to 0.02%, the lowest level since 1940.
That means the 16th was the really big sell off date.
By the time folks got to talking about it on the 18th it was a done deal.

[philman_36]

I am pleased thst you are learning that the actual date of the meltdown that Congressman Kanjorski referred to in his CSPAN interview was September 18, 2008.

If the meltdown was the 18th then the fix came before the problem!

Thursday, Sept. 18 - The bailout
Late Thursday night, Treasury Secretary Henry Paulson met with Congressional leaders to hammer out the details of a large-scale bailout.

[philman_36]

Isn't Free Republic a great place to learn facts!
Yeah, it sure is!