Posted on 01/17/2010 7:22:01 AM PST by opentalk
Sixteen months after the 11 a.m. simultaneous withdrawal of billions of dollars out of money market accounts in the aftermath of Lehman’s demise a few days earlier, no one seems to care about the dimensions of this event.
After all, this catastrophic event did not have quite the physicality of say an actual bank run.
There were no investors standing in line waiting to take their money out for Americans to see just who they were—from what country, wearing what kind of clothes, honest or squirrelly looking, working in tandem with each other? Just computer generated orders simultaneously withdrawing billions of dollars adding up to $550 billion within about an hour.
And, certainly, if it were an act of economic terrorism, which no one seems to have the imagination or cojones to raise, the visual is not there. No Boeing 737 ramming into the Twin Towers, bursting into flames, innocent victims burning alive jumping out the windows to their death, prior to the buildings’ collapse into rubble.
But, make no mistake, this electronic run on the banks of Sept. 18, 2008, was every bit as catastrophic, with numerous victims.
Sure, it could be pure coincidence that exactly at 11 a.m. a wave of concerned investors all decided it was time to electronically withdraw their funds thus creating this crescendo drawdown effect setting in motion a worldwide panic. It could be coincidence. But, it’s doubtful.
The fact that the identities of those who simultaneously decided to withdraw their money at 11 a.m. on Sep. 18, precipitating this panic, were never released, does lead one to question whether or not something sinister was at work.
Is there no one else with even the vaguest curiosity to ask if it was a coincidence or not? And, to suggest maybe an investigation is in order to deliver that vaunted “transparency” that voters seemed to believe they would get after the 2008 elections.
If nothing sinister was at work, then why so much secrecy concerning the destination of this $550 billion in money withdrawn on Thursday, Sept. 18, and those responsible for redirecting these funds out of the U.S. money markets.
Surely the money didn’t go back into the American economy.
No, $550 billion was drained away from the American economy, the consequences of which we suffer to this day.
The exact contours of this event were described by Rep. Paul Kanjorski (D-Pa.) on C-SPAN on Wednesday, Feb. 11, two days after the 200th anniversary of Abe Lincoln’s birth.
An enraged caller had just erupted over the ill-advised $700 billion bailout a few months earlier and Rep. Kanjorski felt pressed to reveal what Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke had told Congress behind closed doors, which so shocked them into supporting this mind-bogglingly huge bailout.
“On Thursday [Sept. 18, 2008] at about 11 o’clock in the morning,” Kanjorski began, “the Federal Reserve noticed the tremendous drawdown of money market accounts in the United States to the tune of $550 billion dollars 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.”
At that point, officials realized, Kanjorski relates, “We were having an electronic run on the banks.”
In response, Kanjorski continued, “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 and that’s what actually happened.”
And, if nothing had been done, Kanjorski revealed, “their estimation was that by two o’clock that afternoon, five and 1/2 trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States and within 24 hours the world economy would have collapsed (which would have meant) … the end of our economic system and our political system as we know it.”
Kanjorski concluded, “Someone threw us in the middle of the Atlantic Ocean without a life raft. And, we’re trying to determine which is the closest shore, and whether there’s any chance in the world to swim that far. We don’t know.”
But why is no one in the least bit curious to know who that “someone” is who “threw us in the middle of the Atlantic Ocean without a life raft”—the consequences of which have so damaged our economy’s job-creating engine?
This writer, for one, would like to know.
“Sure, it could be pure coincidence that exactly at 11 a.m. a wave of concerned investors all decided it was time to electronically withdraw their funds thus creating this crescendo drawdown effect setting in motion a worldwide panic. It could be coincidence. But, it’s doubtful.”
This was no coincidence.
That makes ‘cents’ [I guess ...]
Thank you, Backhoe. FRegards ....
I noticed and locked in a $250k 5% CD with Washington Mutual as they were trying to save their ass!
later
Something criminal happened here and it is outrageous that no one is looking into it.
BINGO!!!
“Something criminal happened here and it is outrageous that no one is looking into it.”
The sad thing is that both Bush and McCain were dragged into promoting stimulus. Bush couldn’t betray McCain’s public support. Someone in the Bush administration [Paulson?] was most likely in on it. Or worse, could someone have goods on the Bush family?
I agree. This is the Soros template.
“Let the investigation begin and end at the hangman’s noose.”
As Janet Reno demonstrated, investigation is difficult without an honest Justice Department. Right now, it’s a “Just-Us” department.
[As Rush would say.]
bump
“But we see that the truth of it is being avoided.”
I agree, but have always wondered if it was to avoid identifying the people behind it or because it is a frightening vulnerability in our system.
I sure would like to know who it was and why it is being covered up.
“Really, some of you people are looking for conspiracies as if they are Easter Egg hunts.”
Well, I accept your explanation, but this is the first time I have heard it, and I follow FR daily. Why didn’t Rep. Kanjorski come right out and say that?
It was his words that led my to believe it was unknown, mysterious parties involved.
Alex Jones and Jesse Ventura would say it is the Bilderbergs manipulating the world economy in their cmapaign to establish their world governance. The fact that both political parties are protecting the information from release to the public does not bode well for the now usurped ‘we the people’. But it started back in 1913, so one can see why the people haven’t a clue how they were usurped from sovereignty. Under the guise of having governmental control of the nation’s money supply, private banking powers were given the control of monetary policy through the private banks known as ‘the Federal Reserve’.
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