Related FR links:
"A $550 BILLION ELECTRONIC RUN ON THE BANKS" (This Economic Meltdown Was Engineered, Folks!]
Update of $550 Billion Run on Banks
No kidding you just figured this out
There was a lot of groupthink going on - all these “best and brightest” jumped on the same “sell” bandwagon at the same time...
That is the question everyone is dancing around...
Limbaugh was right, the 'RATS' "opportunity" has now spiraled out of control and they can't stop it.
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.
BTTT
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.
Deborah Gyapong: Nothing nefarious about Sept. 18 run on the banks
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.
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!
Some of the posts on this board are starting to remind me of the 9/11 truthers.
Where is the DOW headed? Are we going to see 6,000 by summertime?
If that had occurred, what would have happened to the dollar?
I guess we don’t get to know WHICH investors and HOW MANY of them there were?
Have you ever stopped to ask: Why do money market funds exist?
I mean, why don't normal savings or checking accounts simply pay the higher interest rates of Money Market accounts?
Well kids, the *answer* is that Money Markets are designed to ... get this ... circumvent existing banking regulations.
Money Market funds are riskier. To mitigate risk, operators must rapidly liquidate the money market investments at the first whiff of trouble.
And when one Money Market fund liquidates assets, the rest take notice!
Mass runs are not out of the question. Such is the way of the world when circumventing banking regulations.