On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two. Money was being removed electronically.
The Treasury tried to help, opened their window and pumped in $150 Billion but quickly realized they could not stem the tide. We were having an electronic run on the banks. So they decided to closed down the accounts.
Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.
How would the Fed know if money is being added to or subtracted from money market accounts? And an hour or two? LOL! Such precision.
The Treasury tried to help, opened their window
The Treasury has no window.
and pumped in $150 Billion
Or $150 billion sitting around to pump out the imaginary window.
We were having an electronic run on the banks.
Banks? I thought we were talking about money market accounts?
So they decided to closed down the accounts.
The Treasury decided to close down what accounts? On what authority?
Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn
On the average day in 2008, $1.664 trillion was wired thru the Fed system. Why doesn't the economy collapse because of that?
People keep repeating Kanjorski's story, but I've never seen any independent verification. It does make a scary story.
And I guess wires are different than "recalling Treasury securities"?