Posted on 02/11/2009 3:03:27 AM PST by Halfmanhalfamazing
RUSH: I want you to listen to this, Paul Kanjorski. He's a Democrat member of Congress from Pennsylvania. He was on C-SPAN's Washington Journal on January 27th.
KANJORSKI: On Thursday at about 11 o'clock in the morning --
RUSH: Stop the tape a second. Go back and recue this. He's talking about September the 18th here. Let me tease you even further. September the 18th is the day last year that the world economy almost came to an end. Don't smirk. It's true, Snerdley. That's what Kanjorski is saying. So he's talking here about Thursday, September the 18th.
KANJORSKI: On Thursday at about 11 o'clock in the morning the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States, to the tune of $550 billion was 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; 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.
RUSH: Do you remember this? This is the day I think that the Atlanta banks ran out of one-hundred-dollar bills. But now stop and think of this: A $550 billion withdrawal from money market funds in one-to-two hours. I am convinced -- and there's one more sound bite to go here -- I am convinced that this is what they took to the White House and said to President Bush, "We have got a disaster, you have got to get on board with a bailout," which came later on in October, "you've got to get on board with this $700 billion, the TARP 1," all because 550 -- now, what precipitated this? Here's the second Kanjorski sound bite.
KANJORSKI: If they had not done that, their estimation was that by two o'clock that afternoon, five-and-a-half 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. It would have been the end of our economic system and our political system as we know it. We're really no better off today than we were three months ago because we've had a decrease in the equity positions of banks because other assets are going sour by the moment.
RUSH: Now, this is January 27th, Kanjorski is talking about this, and we have to allow, since Kanjorski is a Democrat he's part of the Pelosi team, we have to allow that some of his comment here is being flavored. When he ends up saying we're no better off today than we were three months ago, some of this is obviously oriented toward panic and getting people to go along with the bailout today, but let's leave that aside because that's traditional Democrat Party politics. If they had not done that, if that $550 billion-dollar withdrawal in an hour or two had not been stopped, if they hadn't closed the windows, he says that five-and-a-half trillion would have been drawn out of the money market system of the United States. Now, when I hear money market I think of savings accounts, higher interest rates than passbook savings at the old downtown building and loan where people park their money temporarily 'til they decide where to put it permanently. He says five-and-a-half trillion would have vanished from the banking system, would have collapsed the entire economy of the US and within 24 hours the world economy would have collapsed.
Now, we've gotta allow here for some exaggeration. It's amazing this was said on C-SPAN on Thursday, January 27th, and nobody picked up on it. We got it from a website called LiveLeak. They were rummaging through things, and they found this. Now, let's assume for a second here that elements of this are true. Let's assume that there was a $550 billion run, electronic run on the banks and money market accounts in one to two hours. The question is who was doing this? Who was withdrawing all this money? And the next question is why? That's where my mind starts exploding, and this is dangerous to have these explosions going this way. Could it have been George Soros? Could it have been a consortium of countries -- Russia, China, Venezuela -- countries that are eager to have Barack Obama elected because they know that will make it easier for them to continue their own foreign policies in the world? In the meantime, five-and-a-half billion dollars in one to two hours, that can probably be confirmed. The five-and-a-half trillion is speculation based on the rate at which money was coming out. We could check that the Fed stopped the trading windows, they closed the window. We do know they were pumping money into the system left and right. And remember when the Federal Reserve loaned elements, $2 trillion and we weren't told who got the money? And we still haven't been told who got the money.
We know that last fall, the Federal Reserve lent $2 trillion to somebody or a series of somebodies, and we still don't know where it went. We know last year that we had a crisis on our hands and everybody was saying if we didn't do this today the country was finished and they got Bush on board, they got Paulson on board. Obviously this kind of news, if somebody from the Fed shows up and Bernanke and Paulson say, "Hey, we got a chance here of losing five-and-a-half trillion dollars if we don't do something," I mean that's gotta scare anybody into some sort of action to stem the tide. RUSH: We have an AP-Obama story here that targets the date of this run on money market accounts to September 16th. It was Kanjorski on C-SPAN on January 27th, said it was Thursday the 18th. Here's the AP story: "A money-market mutual fund that 'broke the buck' amid a rush of orders to pull out cash has begun returning an initial $26 billion to investors who had been unable to access their money for more than a month. ... On Sept. 16, the rapid sell-off of assets caused the value of fund assets to fall to 97 cents for each investor dollar put in -- the first instance in 14 years of a money-market mutual fund 'breaking the buck,' or having its per-share value fall below $1. Reserve Management froze redemption orders. That led institutional investors to pull out cash..." I think both dates are right. September 16th, the rapid sell-off begins and "[t]hat led institutional investors to pull out cash from that fund and others, creating fears about the safety of the $3.4 trillion in assets held in money-market funds, and a new temporary government money fund guarantee program.'" It's sort of just a casual, hey, no-big-deal kind of story from the Associated Press -- and here again is Kanjorski talking about this. Let's go back to these two sound bites, Paul Kanjorski (Democrat-Pennsylvania) on C-SPAN's Washington Journal on January 27th.
KANJORSKI: On Thursday at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to the tune of $550 billion was like being drawn out in a matter of an hour or two. The Treasury opened up its window to help. They pumped $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.
RUSH: By the way, I should tell you that Kanjorski's source for this is none other than Bernanke -- Ben Bernanke, the Federal Reserve -- and the Treasury secretary, Hank Paulson. They are the two figures that told members of Congress what was going on with this initial run of $550 billion, an electronic run on the banks, money market accounts, investor accounts here. He goes on to say this, if they had not stepped in to stop this, if they had not closed the window...
KANJORSKI: If they had not done that, their estimation was that by two o'clock that afternoon, $5-1/2 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. It would have been the end of our economic system and our political system as we know it. We're really no better off today than we were three months because we had a decrease in the equity positions of banks because other assets are going sour by the moment.
RUSH: So the last part, I think that's just salesmanship for doing something now to get the stimulus bill passed, although Kanjorski is among some Democrats starting to shift to the cant that more time is needed to make a correct decision this time; which I think is one of the reasons Geithner postponed his announcement to today from last week or even today. So, you know, I have been suspicious of all this that happened last fall. It just seemed too perfectly timed. Now we know that these are not individual money market accounts like you would have had to withdraw your money. This is money invested in a mutual fund money market account. So it is quite possible somebody could have started a run on this thing and the word spread, and it did -- and the $550 billion withdrawal in one hour would panic anybody. So there's so much to this. You know, it's always the case that there's so much more going on in all this that we don't know. The Drive-By Media, any longer, is worthless in ferreting out the truth involved in events. They totally exist on the surface. They exist with a path of least resistance particularly with Democrats in power, because with the presumption that Democrats could abuse power or commit ethics violations just doesn't even cross the radar. It doesn't even show up on the radar. It's not possible for Democrats to behave in that fashion, and so all this stuff goes on below the surface and we find out about it much later after the fact.
YouTube: CSPAN Rep Paul Kanjorski Reviews the Bailout Situation
USA Today: 'Buck-Breaking' Money Market Mutual Fund Returns Initial $26B
IMO it was an intentional act, not a bunch of panicked people.
Related Links:
http://www.freerepublic.com/focus/bloggers/2182993/posts?page=8#8
http://www.freerepublic.com/focus/bloggers/2182993/posts?page=14#14
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http://www.freerepublic.com/focus/bloggers/2182993/posts
“RIGHT BEFORE THE ELECTION OF PRESIDENT HUSSEIN “A $550 Billion Electronic Run on the Banks””
Atlas Shrugs ^ | 2/11/09 | Pamela Gellar
Posted on February 10, 2009 10:52:20 PM PST by FromLori
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http://www.freerepublic.com/focus/f-news/2132937/posts
“The “October Surprise” - a lttle early”
vanity | November 16, 2008 | Lancey Howard
Posted on November 15, 2008 10:26:30 PM PST by Lancey Howard
“IMO it was an intentional act, not a bunch of panicked people.”
Although I don’t like conspiracy theories in general, I have to agree with you. Actually, I don’t think people have started to panic yet, and I am very concerned what will happen if and when people do start to panic.
So where did it go? Who did the withdrawing?
I can’t have a bank trasaction over $10k unless I give up the left gonad but these people are anonymous????
Well, Schumer publicly precipitated the Indy Mac run. Who is to say that Democrat operatives, ones with a lot of resources, Soros, say, didn’t engineer the $550 billion run. Soros has a history of sabotaging governments for personal gain and access to the resources to do it and Democrats(and socialists and liberals and other leftists) have no principled reasons not to do something like that if it brings them to power.
All animals are equal, but some are more equal than others.
I can not believe Rush is becoming a person who believes in conspiracies. Up is down...this is ridiculous.
Amazing if this MM run was part of the conspirancy to elect our Stalin. Who would be a better opponent than an economic doofus like John McCain to fall in the trap? McCain lost any chance he had when he flip-flopped on the initial BailFail during the campaign. Wonder how the other R candidates would have responded?
Why?
No, it was a panic.
A money market fund, Reserve Primary Market Fund, (ticker RPFXX) “broke the buck” as a result of having to write down over $700 million of short-term commercial paper from Lehman to zippo. The NAV of the money market shares fell to $0.97.
At that point, all assumptions of how safe money market funds were were broken. The previous assumption had been that money market funds were as safe as cash. RPFXX held about $60B when this became public, but the size and scope of Lehman’s paper holdings throughout the bond market suddenly made a lot of people no longer trust money market funds in a fat hurry.
It was at this point that Treasury came out with a policy of guaranteeing the value of any money market fund in the US.
I read somewhere that only something like 2 percent of the “money” out there is actual dollar bills.
Almost all of it is stocks, money market accounts, pension funds, blah blah blah basically fake money.
So no matter what, there’s not enough money to cover the “money”.
And if everyone was to run to the bank to take out all their C-Notes, the bank would be closed in like 15 minutes.
So where is the 700 million, and WHY THE HELL AIN’T THOSE PEOPLE IN JAIL?
That is the big question. Think about this - the price of oil spiked just prior to this. Is is possible that entities in the middle east jacked up the price of crude in order to amass a huge sum of money specifically for this purpose? Given Obambi's friendliness towards our adversaries, they could very well have played a major role in this. Iran, Syria, and a few others would stand to gain from having a 'friendly' in the White House.
ping
I remember that day now. Fidelity sent me an e-mail advising me that my MM was now insured. that was the only reason I left my money in. I was ready to pull it out back then. Actually, if it wasn’t FDIC insured right now, it would all be in my safe.
The only way to discern that is to see just who did the withdrawing. If it's a large number of entities representing the typical cross-section of the market, it might be panic. If it was orchestrated by a few hundred entities with similar political goals, then it was not a panic but a deliberate move to upset the apple cart (which arguably has been prime for an upset).
We need more data.
The 550B would have nothing to do with 250k guarantees and vice versa. This mythical run was not made on 220,000 separate accounts that Soros had in 220,000 different names. The ideas expressed here are ridiculous and disjoint. Obviously the financial system was in turmoil and there was a rush to cash at some points. But the credit unwinding and deflation were well underway thanks to protectionist European banks. The trigger event was the initial failure of bank bailout thanks to a fair number of Republicans and some left wing Democrats. They were quickly whipped into shape so that our banks could be nationalized.
As for timing, the crisis was bound to affect the election especially with McLame's subservience to the bailout masters. But to say that there was a particular event timed to affect the election and that affected the outcome is ridiculous. It smacks of the usual denial of reality:
Debt, as a ratio to income (e.g. GDP), cannot grow to infinity. Sooner or later it crashes.
I never (well, almost) spend my dollar bills.
So I got like 17 stacks, each with 100 dollar bills wrapped by a rubber band.
I tell folks, and they act like I’m looney tunes, totally crackers.
Tell ya what. If I get a flat tire and the ATM don’t work, I got my stacks!
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