I am not promoting the links on this, just the words of the congressman on C-Span.
The withdrawals Kanjorski is describing there were NOT one counterparty. They were in fact coming from tens of thousands of individual savers who were concerned that even the assets in their money market accounts were no longer safe from the financial contagion.
If it were anything other than that, then extending the FDIC 250k quarantees to money market accounts (held at non-FDIC institutions like brokerages) would not have been effective in stemming the tide of the withdrawals. But it was effective, the withdrawals stopped. There is in fact no way to “short” a money market fund. The nefarious actors you want to exist A. don’t and B. couldn’t accomplish trades such as those being described in the clip.
I REPEAT. You guys have no idea what you are talking about. You don’t understand the financial markets, and when you are going around looking for one or two scapegoats to blame for a disastrous system-wide screw-up, then you are in the LOONY ZONE!