Defusing A $5.5T Run On The Banks

New York Post ^ | February 15, 2009 | Michael Gray

[CutePuppy]

The Post hit the nail right on the head when it reported exclusively last September that the US narrowly averted a crash of the financial markets, it was recently revealed.

In the days after the Lehman Brothers bankruptcy, there was a run on the country's money market funds as investors feared the bonds held by the funds would collapse - which The Post reported in a Sept. 21 story entitled "Almost Armageddon."

Rep. Paul Kanjorski, of the House Finance Committee, confirmed the bank run recently.

.....

[CutePuppy]

"If they had not done that, their estimation was that by 2pm, $5.5 trillion would have been drawn out the money market system."

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

Update of $550 Billion Run on Banks

[al baby]

No kidding you just figured this out

[GOPJ]

There was a lot of groupthink going on - all these “best and brightest” jumped on the same “sell” bandwagon at the same time...

[ikka]

WHO?

That is the question everyone is dancing around...

[Natural Law]

What occurred, in my opinion, was the financial equivalent of either Pearl Harbor or the Reichstag fire. Find the ones who initiated this and you will know which it was. Start by asking who benefited.

[VRWCtaz]

I'm not so sure we weren’t attacked... the question to ask is the enemy foreign or domestic? (yes, I do own a foil hat)

[ncalburt]

Try Soros . The guy who in hiding for Bank runs in two other countries!
The american spectator wrote about Soro’s crash back in Sept !
The Dems in Congress knew all about it.

[FlingWingFlyer]

Anyone who hasn't yet figured out the DemocRATik Party put us in "the worst financial crisis since the Great Depression" in order to take total control of the country, isn't paying attention.

Limbaugh was right, the 'RATS' "opportunity" has now spiraled out of control and they can't stop it.

[PGalt]

Thanks for posting and for the link to FReeper FromLori’s OUTSTANDING links and post of Pamela Gellar’s Update of $550 Billion Run on Banks.

[Jet Jaguar]

BTTT

[FlingWingFlyer]

Soros is my bet too!

[CutePuppy]

Interesting comment on this from Deborah Gyapong's "blog on religion, politics and storytelling in an age when the truth seems stranger than fiction" :

Deborah Gyapong: Nothing nefarious about Sept. 18 run on the banks

Nothing nefarious about Sept. 18 run on the banks

David C. John at the Corner explains there was no nefarious plot on Sept. 18:



There have been reports that Rep. Paul Kanjorski said that he was told of a massive outflow of funds from U.S. banks to others overseas on September 18 that the Federal Reserve could not control. There is no way to verify that absent a statement from the Fed. However, we do know that during mid-September, there was a clear movement of funds from U.S. banks to European and other banks where their governments had either already guaranteed their deposits or had made substantial contributions to bank capital. That was one major reason why the TARP plan was suddenly shifted from the purchase of bad housing-related assets to a bank capital infusion plan that was similar to what other governments were doing. Those deposits that left U.S. banks were the proverbial “hot money” that moves quickly to higher interest rates and safer environments. There was no indication that the money movement was caused by any nefarious plot. However, this report reinforces the fact that financial markets operate on confidence. When that is lost, funds either flow elsewhere or get locked up in safe investments such as government debt.

Me? I don't want to go overboard into some kind of looney conspiracy theory mode.

But, funny, around the time Carter became president, I was so sure the American economy was going to tank and civilization was coming to an end, that I became a back-to-the-lander, survivalist type in Nova Scotia, homesteading on an old farm and trying to see if we could raise and grow our own food should the worst happen.

It proved to be an exercise in voluntary poverty. Those who had confidence that America could survive the malaise of the Carter years shot forward in the 80s under Reagan.

At the same time as I don't want to go overboard I sure as heck want answers as to what happened, why it happened, who withdrew that money, and whether the panic has been manufactured to ensure an Obama win.

[dalereed]

I drew down my Vanguard MM and out it in a 5% CD the 1st of Secember when it bcame obvious that there was a run on Washington Mutual, 15 billion in 2 weeks.

Caused by the media!

[CutePuppy]

No kidding you just figured this out

Silly me...

[Windcatcher]

After the doxin “incident” in the Ukraine I’m surprised that Soros is still breathing. I would have thought that Vladimir Yushchenko would have made SURE to punch his ticket.

[TheLawyerFormerlyKnownAsAl]

$550B run

Hoax, never happened.

[DaisyCutter]

Some of the posts on this board are starting to remind me of the 9/11 truthers.

[CutePuppy]

"If they had not done that, their estimation was that by 2pm, $5.5 trillion would have been drawn out the money market system."

I thought it was $550B (which was no small amount just 6 months ago) as well before this article, turns out that actual run rate was closer to 10 times that (which does look smaller and smaller every day now with all the bailouts and hyper-stimuli)...

[Cobra64]

So... I've been standing pat over the last 2 years, having let my "managed" Fidelity Accounts "managed."

Where is the DOW headed? Are we going to see 6,000 by summertime?

[dr_who]

If that had occurred, what would have happened to the dollar?