On Sep 18, 2008, at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two.
The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. 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.
If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
I wish the Repubs would investigate this.....it was right before elections, McCain ran back to WH...and Obama ran the meeting. I believe that cost McCain the Presidentcy.
“Among the financial instruments that may have been used in the economic warfare scenario are credit default swaps, unregulated and untraceable contracts by which a buyer pays the seller a fee and in exchange is paid off in a bond or a loan. The report said credit default swaps are “ideal bear-raid tools” and “have the power to determine the financial viability of companies.”
Another economic warfare tool that was linked in the report to the 2008 crash is what is called “naked short-selling” of stock, defined as short-selling financial shares without borrowing them.
The report said that 30 percent to 70 percent of the decline in stock share values for two companies that were attacked, Bear Stearns and Lehman Brothers, were results of failed trades from naked short-selling.
The collapse in September 2008 of Lehman Brothers, the fourth-largest U.S. investment bank, was the most significant event in the crash, causing an immediate credit freeze and stock market crash, the report says.
In a section of who was behind the collapse, the report says determining the actors is difficult because of banking and financial trading secrecy.
“The reality of the situation today is that foreign-based hedge funds perpetrating bear raid strategies could do so virtually unmonitored and unregulated...”
http://www.washingtontimes.com/news/2011/feb/28/financial-terrorism-suspected-in-08-economic-crash/?page=4
The Houses and the banks are complicit along with the regulators, the lobbyists, and our own elected Congress.
But, let’s blame the foreign enemies rather than the people in our own government and in our own financial system who created the mess.
And no one is held accountable.