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Shocker: Electronic Money Market Run Nearly Destroyed US Economy
RushLimbaugh.com ^ | February 10th | Rush

Posted on 02/11/2009 3:03:27 AM PST by Halfmanhalfamazing

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1 posted on 02/11/2009 3:03:27 AM PST by Halfmanhalfamazing
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To: Halfmanhalfamazing
How The World Almost Came To An End At 2PM On September 18

YouTube: CSPAN Rep Paul Kanjorski Reviews the Bailout Situation

USA Today: 'Buck-Breaking' Money Market Mutual Fund Returns Initial $26B

2 posted on 02/11/2009 3:04:57 AM PST by Halfmanhalfamazing (Undercut Microsoft: Use Linux)
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To: Halfmanhalfamazing

IMO it was an intentional act, not a bunch of panicked people.


3 posted on 02/11/2009 3:10:52 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: All

Related Links:

http://www.freerepublic.com/focus/bloggers/2182993/posts?page=8#8
http://www.freerepublic.com/focus/bloggers/2182993/posts?page=14#14

#

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

#

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


4 posted on 02/11/2009 3:11:45 AM PST by Cindy
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To: driftdiver

“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.


5 posted on 02/11/2009 3:17:27 AM PST by pieceofthepuzzle
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To: Halfmanhalfamazing

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????


6 posted on 02/11/2009 3:19:18 AM PST by Adder (Proudly ignoring Zero's political stylings since 1-20-09!)
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To: Cindy

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.


7 posted on 02/11/2009 3:21:34 AM PST by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: Adder

All animals are equal, but some are more equal than others.


8 posted on 02/11/2009 3:24:41 AM PST by ClearCase_guy (Obama must be the Antichrist. No one else would work so hard to destroy the US.)
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To: driftdiver

I can not believe Rush is becoming a person who believes in conspiracies. Up is down...this is ridiculous.


9 posted on 02/11/2009 3:25:07 AM PST by nyconse
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To: Cindy

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?


10 posted on 02/11/2009 3:26:56 AM PST by iopscusa (El Vaquero. (SC Lowcountry Cowboy))
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To: nyconse

Why?


11 posted on 02/11/2009 3:28:04 AM PST by John W
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To: driftdiver

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.


12 posted on 02/11/2009 3:28:59 AM PST by NVDave
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To: Halfmanhalfamazing

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.


13 posted on 02/11/2009 3:29:07 AM PST by djf
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To: NVDave

So where is the 700 million, and WHY THE HELL AIN’T THOSE PEOPLE IN JAIL?


14 posted on 02/11/2009 3:32:13 AM PST by djf
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To: Adder
Who did the withdrawing?

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.

15 posted on 02/11/2009 3:33:37 AM PST by meyer (The left is flooding the ship - let's quit bailing water. We are all John Galt.)
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To: AmericanVictory

ping


16 posted on 02/11/2009 3:34:20 AM PST by Jim Robinson
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To: NVDave

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.


17 posted on 02/11/2009 3:37:28 AM PST by RC one
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To: NVDave
No, it was a panic.

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.

18 posted on 02/11/2009 3:39:57 AM PST by meyer (The left is flooding the ship - let's quit bailing water. We are all John Galt.)
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To: Halfmanhalfamazing
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.

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.

19 posted on 02/11/2009 3:42:18 AM PST by palmer (Some third party malcontents don't like Palin because she is a true conservative)
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To: RC one

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!


20 posted on 02/11/2009 3:43:34 AM PST by djf
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