September 18, 2008: Edge of Collapse

The Daily Reckoning ^ | 02/11/2009 | Dave Gonigam

[RushingWater]

On Thursday [the 18th], at about 11 o’clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two.

The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

[RushingWater]

I am curious too as to who - that why I posted this. May all be a legit asset move by a foreign national but it’s like, hey, wait a minute, what the heck is going on here?

[yankeedame]

This whole thing has a creepy, Professor Moriarty feel about it.

" He is the Napoleon of crime, Watson. He is the organizer of half that is evil and of nearly all that is undetected...He is a genius, a philosopher, an abstract thinker. He has a brain of the first order. He sits motionless, like a spider in the center of its web, but that web has a thousand radiations, and he knows well every quiver of each of them. He does little himself. He only plans. But his agents are numerous and splendidly organized. Is there a crime to be done... the word is passed...the matter is organized and carried out. The agent may be caught...But the central power which uses the agent is never caught."

[stylin19a]

he misread\heard the video. Rep. Paul Kanjorski said he was briefed on 9/15 and the briefing said that it was Thursday that withdrawals were happening. It couldn't have been the 18th. The Thursday prior to 9/15/ was 9/11

[cherry]

it is not good for China or the Middle East if we crash and stop buying their stinking oil....Russia I don't know about....

Soros?...is he rich enough to do that?

I can see a few union back pension funds engineering a run on the banks so to speak.....they wanted their puppet in office and they were going to get him come hell or high water......

I am mad at our American people and I don't feel like even supporting the car industry......those ingrats have destroyed our country by their blind backing of the oligharchi.

[pacpam]

Only a guess, but I left the stock market early and parked the money in the MMAccount at the brokerage house I deal with - it’s a safe haven and earns interest. The brokerage house wants to make money on my money so puts it somewhere - MMMFs- to get interest for a while. I decided along the Sept 18 timeline - along with the multitudes - I want my money NOW. The brokerage house puts in their call to pull back money they have invested in MMMFs and suddenly you have electronic trades pulling out millions of dollars. Not sinister but as evidence, my brokerage house took the shelter of the temporary guarantee program, and I think I’m glad they did.

[palmer]

We are at war, but the enemy is not obvious.

Not unless you have a mirror handy. We set ourselves up for the biggest fall of all time. The only thing the alleged manipulators could do was move up the timing of the collapse. If there were, hypothetically, no runs on Sept 18th, then they would have happened a bit later, but probably not later enough to elect McLame.

[palmer]

Chucky Schumer. He started the ball rolling before Sept of '08 (he publicly claim two large banks were insolvent, before they actually were).

Where did you pick that up? What he said before the bailout vote in the Senate is that insurance companies were insolvent. A lot of solvent ones tanked the next day. Obviously didn't help the economy, but the reason he did it is to get the bailout passed for his friends on Wall St.

[SpaceBar]

I believe the poster you replied to was referring to Chuck Schumer's public statement that Indymac was basically insolvent which started a panic. That statement predates by many months any move by Bush for a federal bailout or any congressional hearings or votes on the matter.

Feds Cite Schumer In Collapse Of IndyMac

[M Kehoe]

Where did you pick that up?

Don't remember right now, but if you do a Lexus/Nexus you will find it. I do remember one of the banks was WaMu. Best recollection was Jul '08.

5.56mm

[berdie]

later

[bboop]

I bet Rush has something on his website re his research. He’s definitely looking at this.

[R_Kangel]

Just putting my tinfoil hat on for a second, but is there any significance to the Date and time?

9/18/09 11:00 AM. It's a bunch of nine related numbers and an eleven.

OK I shall remove my tinfoil hat now.

[SpaceBar]

The following is the actual soundbite of the above mentioned comments by Savage and the peculiar statement by Representative Paul Kanjorski on NPR.

Go here and download the 2/11/09 H2 (hour two) Savage podcast. Right clicking the podcast icon will allow the saving of the mp3 file to your local harddrive. The relevant portion begins at about three minutes and twenty seconds in, just after the Barney Frank comments. The actual MP3 file is about eighteen megs so get a cup of coffee if you decide to download it.

[SpaceBar]

err... C-SPAN

[Freiherr]

Yess

Get in the Pinck Panter!!!

[palmer]

You were right, but it was IndyMac. See link at 48.
Thanks, SpaceBar!

[MeneMeneTekelUpharsin]

Yes, the entire market collapse was manipulated for the greatest political gain. No way exists on God’s green earth that this was a result of “economic” circumstances. Someone MADE it bad on purpose. It has ruined a lot of my coworkers retirement plans.

[eyedigress]

It whacked me and my friends pretty good. Where the hell is 60 minutes? Effin bastards. It’s all a charade.

[palmer]

Someone MADE it bad on purpose

They manipulated the timing, yes, but it was very bad all along. The doomsayers were mostly right. I recommend William Quirk's article in this month's Chronicles (only in print, not online, http://www.chroniclesmagazine.org/index.php/2009/02/06/the-legacy-of-lincoln%E2%80%94february-2009/)

In a nutshell he points out how the systemic risk was allowed to grow thanks to 1999 bipartisan repeal of Glass-Steagal (which made the illegal 1998 merger of Citi and Travelers Ins legal). Also the Commodity Futures Modernization act of 2000 by a lame duck Congress and President which legalized the casino for Credit Default Insurance (exact analogy: I could buy fire insurance on your house and collect if it burns down). That is also illegal in most states, but the Feds overrode the states and thus allowed the house of cards to grow to a monument of cards.

Normal recessions allow for credit and business contraction, but our financial system in 2006 could not survive any contraction, not to mention Iceland and Eastern Europe, the rest of Europe and parts of Asia.

[TYVets]

ping