2008 Market Crash Should be Investigated (and 2018?)

Canada Free Press ^ | April 8, 2010 | Jeff Lukens

[lasereye]

Almost two years after the mortgage crisis and stock market crash, no one seems to wonder about the “September surprise” that shifted the 2008 presidential election to an unknown leftist politician who had been elected to the Senate only two years before. A pulp-fiction writer could hardly have created a more contrived and bizarre story. But this was not make-believe. No, it is now our own gritty reality show that we only wish we could turn off.

The week of Sept. 15, 2008, was a debacle of huge proportions. On Monday, Lehman Brothers filed for bankruptcy while other lending institutions lined up like dominoes teetering on the edge of bankruptcy. But the week was hardly over. On Thursday, an electronic run on the banks occurred. In an unprecedented move, the Treasury and the Federal Reserve had to act together to stop what had become a full-fledged panic. On Saturday, Sept. 20, The Wall Street Journal recounted events of that previous Thursday:

“Instead of lining up at bank windows, investors were unloading financial assets on their PCs. Credit markets had seized up, to the point that even routine daily settlements had stopped until banks had the actual securities or cash in hand.”

“Investors were rushing out of these [Treasury and Federal Reserve] funds—$105 billion out of $1.8 trillion on Thursday alone—which in turn caused the funds to redeem their commercial paper investments.”

“Issuers of that paper then had to find new funders, which in a pinch are banks. But jittery banks were refusing to accept paper from even worthy companies amid the panic, creating a larger credit breakdown. In response, Treasury will now insure nonbank money-market fund deposits for the next year, to slow money-fund redemptions.”

For such a large and coordinated exodus of funds to occur in U.S. markets, something more than individual “investors” at their PCs had to be in play. Large and well-managed hedge and mutual funds were undoubtedly behind much of the move.

A few months later on a C-Span interview, Rep. Paul Kanjorski, House Capital Markets Subcommittee Chair, described that day:

“On Thursday at about 11 o’clock in the morning the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States, to the tune of $550 billion was being drawn out in a matter of an hour or two. The Treasury opened up its window to help. It pumped $105 billion in the system and quickly realized that they could not stem the tide; we were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there.”

The $550 Billion withdrawn in an hour or two that Rep. Kanjorski refers to in his statement has never been independently confirmed or refuted.

In mid-September, John McCain was ahead of Barack Obama in some polls by about 3 percent. By Oct. 10, the S&P 500 Index had lost 25% of its value from what it had been a month before. The crash was a major calamity for the McCain Campaign. And now, with Obama in the White House, it has become a calamity for us all.

The fact remains that the identities of those who withdrew their money that week were never disclosed. And, knowingly or not, they created a panic that altered the course of the election. One can only wonder whether something more than normal market forces was at work.

Courtesy of Barney Frank and Chris Dodd, the crisis came about by the uncertain value of subprime securities held by Fannie Mae, Freddie Mac, banks, saving and loans, and other lending institutions. A declining market in itself is not noteworthy, but to induce a panic in the midst of a presidential campaign, if ever proven, would be reprehensible and an outrage to the American electorate.

While the stock market collapse was a disaster for your average IRA or 401(k) account, some investors benefited handsomely. It is widely agreed that hedge funds profited by selling short the collapsing market in 2008, and chief among them was George Soros’ hedge fund. Soros may have personally had the motivation, method, and opportunity to trigger the crash.

Soros’ overseas-based hedge fund evades much scrutiny, and its activities that week left almost no trail. Could Soros and his hedge fund be behind many of the withdrawals of that week, and particularly on that Thursday? We need to know. The massive outflow of U.S. funds to offshore accounts that critical week during the campaign could be a coincidence, but it is doubtful.

George Soros is a multi-billionaire answerable to no one. Hastening a market meltdown to give the election to Barack Obama would fit his pattern of profiting while destroying the social order of his target country. Triggering a crash in 2008 would also serve his political investments.

Soros is obsessed with power. He wants a One World Government, redistribution of wealth, open borders, and universal health care. He is determined to change America forever by deconstructing its sovereignty and ability to defend itself. Soros was a huge backer of Barack Obama, and now his anointed president is determined to change America to their mutual view.

Soros made his fortune by short selling currencies and then pouring substantial amounts of his private wealth into organizations to subvert various nations. He nearly bankrupted the Bank of England by shorting the pound in 1992. He wrecked the Malaysian economy in 1998, and subsequently that of Indonesia as well. He is responsible for stirring-up instability in Africa, the Balkans, Eastern Europe, and the former Soviet republics.

Over the years, Soros has positioned himself to take control of the Democrat Party through the hundreds of 527 organizations he has helped financed. These organizations have become a “Shadow Party” unto themselves, and manipulate public opinion for their own end.

Among them: the National Education Association, ACORN, AFL-CIO, American Federation of Teachers, The Media Fund, the Open Society Institute, Planned Parenthood League, the Sierra Club, America Coming Together, the Huffington Post, Moveon.org. If a left-wing organization is in the news, it has probably received money from George Soros.

Why have the identities never been reported of those who withdrew funds that week? Shouldn’t there be even some curiosity about an event that wiped out the jobs and life savings of so many people? And why has there been no follow-up inquiry by into Rep. Kanjorski’s statement? There needs to be a public investigation concerning the amounts and offshore destinations of the funds withdrawn from U.S. markets that precipitated the crash.

Did an unwritten partnership exist between George Soros and Barack Obama? Could Soros, through Obama, be seeking a “velvet revolution” in the dismantling of our nation as he has done elsewhere? These questions need further investigation. With the Alinskyite tactics employed by Team Obama, none of this is beyond the realm of possibility.

Americans recoil at the thought of having their elections manipulated by outsiders. As long as Democrats control Congress, there surely will never be an effective inquiry into this affair. Perhaps a GOP victory this November will allow a thorough examination finally to begin. Add this to the many investigations the GOP will need to make when they finally take back Congress.

[lasereye]

Back in 2008 there was an underlying problem: massive bad loans causing a credit freeze. Today there is no such thing. I watched Jim Cramer on CNBC tonight and he mad it clear this is not like 2008, pointing out the banks are sound etc.

Besides Soros I've heard sovereign wealth funds may have been behind the 2008 crash.

This stock market drop may turn out to be just a "correction" in hindsight. They happen from time to time. But at the moment this is looking very strange. The speed of it is unusual. If it continues declining right up to election day and then magically starts going up again it will be a virtual certainty this was not a normal correction.

[Windflier]

Looks like you posted the whole blog post. Good job!

[kiltie65]

Wasn’t that the reason Soros got deported from Britain? He had tried something similar there. Why doesn’t he get his sorry a$$ deported from the United States?

[Boardwalk]

Yes Soros could!

[Mears]

A tad off topic but Jim Cramer spoke at my grandaughter’s college graduation——a great speech.

.

[Califreak]

Because he’s bought most of our politicians.

[rdcbn]

There were Congressional investigations on the 2008 market crash and ensuing financial crisis.

Testimony was provided that the there was an attempt to withdraw a total of in the neighborhood of at least 5 Trillion dollars from the US economy and that quick action by the Treasury Dept put a stop to the drain after only 550 billion dollars had been withdrawn.

The identities of the entities who entered the 5 trillion dollar withdrawal and where the money went after it was withdrawn was never disclosed but several military intelligence officers gave the opinion that the 2008 crash was created by an act of economic warfare against the United States.

Several Trillion dollars is a lot of money and it would require collusion between a number of wealth funds or very large money managers to pull that much money out of the US economy

[Jane Long]

LOL....good on you, for including (2018) ;-)

[a fool in paradise]

>>Almost two years after the mortgage crisis and stock market crash, no one seems to wonder about the “September surprise” that shifted the 2008 presidential election to an unknown leftist politician who had been elected to the Senate only two years before.

Barney Frank got some young male ass out of it

http://www.freerepublic.com/focus/news/2086850/posts

September 11, 2003

NYT: New Agency Proposed to Oversee Freddie Mac and Fannie Mae

By STEPHEN LABATON

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

~~ snip ~~

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed.

''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.

[a fool in paradise]

Jamie Gorelick got 26,000,000 pieces of silver

https://www.cnsnews.com/news/article/former-clinton-official-paid-26-million-fannie-mae-taxpayer-bailout-now-obama-shortlist

Former Clinton Official Paid $26 Million by Fannie Mae Before Taxpayer Bailout Now on Obama Shortlist to Run FBI
By Chris Neefus | March 23, 2011 | 5:00 AM EDT

[a fool in paradise]

how queer this puzzle is

https://www.foxnews.com/politics/rep-barney-frank-admits-to-helping-ex-lover-land-job-at-fannie-mae
Published May 26, 2011Last Update December 23, 2015
Rep. Barney Frank Admits to Helping Ex-Lover Land Job at Fannie Mae

Rep. Barney Frank says there was no conflict of interest in him helping his former lover secure a job with Fannie Mae 20 years ago while he was on the committee charged with overseeing the lending giant.

“It is a common thing in Washington for members of Congress to have spouses work for the federal government,” Frank told the Boston Herald Wednesday night. “There is no rule against it at all.”

Frank explained to the newspaper that he helped his ex-companion, Herb Moses, get a job at Fannie Mae in 1991 when one of its executives approached him about Moses, who had graduated with a master’s degree in business administration from Dartmouth College and had applied for a job at the mortgage company.

http://freerepublic.com/focus/f-bloggers/2097798/posts
Barney Frank’s Lover, Herb Moses, Was a Senior Executive at Fannie Mae
American Nonsense ^ | October 3, 2008

According to National Mortgage News, Moses “helped develop many of Fannie Mae’s affordable housing and home improvement lending programs.”

Of course, such programs led to the mortgage meltdown that prompted last month’s government takeover of Fannie Mae and its financial cousin, Freddie Mac. The giant firms are blamed for spreading bad mortgages throughout the private financial sector and putting the country on the brink of financial meltdown.

[a fool in paradise]

Warren Buffett lost billions trying to run up the price of gas while Bush was president in 2008

http://www.freerepublic.com/focus/f-news/2197185/posts
BUFFETT: I WAS ‘DUMB’ (sends 21 page letter to shareholders)
NY POST ^ | 3/2/09 | RICHARD WILNER

IN LETTER, ORACLE ADMITS TO ERRORS IN WORST-EVER ‘08

Warren Buffett admitted to doing some “dumb things” in 2008 - the worst year for Berkshire Hathaway in the 44 years he has run it. A brutal stock market decline amid a teeth-gnashing recession pushed Omaha-based Berkshire to a 96% drop in profits, its fifth straight quarterly earnings decline. Buffett, known as the Oracle of Omaha for his decades-long record of picking value investments, said buying ConocoPhillips shares when gas and oil prices were at their peak was perhaps the dumbest move in 2008. Berkshire bought 84.9 million shares at $82 a share - it closed Friday at $37.25, Buffett’s paper loss was $2.6B. “I still believe the odds are good that oil sells far higher in the future than the current $40-$50 [per barrel] price,” Buffett wrote... “But so far I have been dead wrong.”

[a fool in paradise]

We should extradite Soros to one of the countries unhappy with his attempts to ruin their economies.

[ncalburt]

Rusia has a warrant out for him .

[originalbuckeye]

McCain suffered from ignorance of the manipulation by the dark forces. He immediately suspended his campaign to return to DC and help with the voting. Obama (also a Senator) on the other hand, said (cooly) ‘they can call me if they need me’. From then on, Obama was ahead and the rest is sadly the history of our country. No one will ever be able to convince me that Obama didn’t know exactly what was going on. And the manipulation of naive Americans put him in the White House.

[marktwain]

McCain suffered from ignorance of the manipulation by the dark forces.

Could be. He famously said, more than once: "The Media is my base."

McCain was not stupid, but he was a "Progressive".

[Engedi]

I remember this happening. McCain looked like a fool afterwards and Obama, knight in shining armor.

Obama wiped the floor with McCain, embarrassed him and cost him the election and yet McCain voted to help Obama as President. McCain never hated Obama like he did Trump.The Obama’s even got an invite to his funeral.

[Boardwalk]

I had a very good looking male friend who said he would deny it but Barnie Frank grabbed his ass at a rally from a hand on his shoulder right to his ass. Of course my friend was a liberal but still!

[lasereye]

LOL....good on you, for including (2018)

Something fishy may be happening now as well as then, which is why I posted this. The speed of this stock market decline seems suspicious.

[drdirt333]

I have no doubt the Deep State is manufacturing this turmoil.