Look, I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th. Here's the facts, and we don't even talk about these things. On Thursday (which would have been September 11th…ahem) at about 11 o’clock in the morning the Federal Reserve noticed a tremendous draw down of money market accounts in the United States to the tune of $550 Billion was being drawn out in in a matter of an hour or two.
The Treasury opened up its window to help and pumped a $105 Billion into the system, and quickly realized that they could not stem the tide. We were having an electronic run on the banks.
Decided to close down the accounts and announce a guarantee of 250k per account so there wouldn’t be further panic out there, and that’s what actually happened.
If they had not done that their estimation was that by 2:00 that afternoon, 5.5 TRILLION would’ve been drawn out of the MM system of the US,
would’ve collapsed the entire economy of the US
and within 24 hours the world economy would have collapsed.
Now we talked at that time about what would happen if that happened.
It would have been the end of our economic system and our political system as we know it.
And that’s why when they made the point, we’ve got to act and do things quickly we did it.
So in a way it is President Bush's fault for not allowing not only our political and economic system, but the world's as well, to fail and put the world in total chaos which is exactly what O-bomb-us and Soros had in mind, IMHO.
Thus the statement about abandoning free-market principles to save the free market. Unfortunately, we were not privy to the above information last September.
This has been posted on FR repeatedly and yet there are people that are ignorant of the facts. I find that surprising.