Skip to comments.Rep. Kanjorski: $550 Billion Disappeared in “Electronic Run On the Banks”(11am,09/15(8?)/08)
Posted on 02/09/2009 10:54:52 PM PST by TigerLikesRooster
Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run On the Banks"
At 2 minutes, 20 seconds into this C-Span video clip, Rep. Paul Kanjorski of Pennsylvania explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars."
According to Kanjorski, this electronic transfer occured over the period of an hour or two.
(Excerpt) Read more at liveleak.com ...
Interesting. Thanks. What would be most illuminating is to know where all that money was destined, then compare that with who was driving oil prices and who launched the short attacks on Morgan Stanley in October making the current crisis public.
Are you sure you should be posting facts on this topic? LOL!
Rumor travels faster, so you can think for sure that it would have accelerated. If so, 5.5 trillion, or 2 trillion, there’s not much difference, both would have had severe impacts.
What they did was effectively a bank holiday without announcing one.
Rush is asking this same question right now: “Could it have been Soros?”...
“could it also have been a consortium of countries that wanted to see Obama in the White House?”
Rush on this now
Those headlines are interesting...
My question has always been: How did a small percentage of bad mortgages (less than 5%) lead to the imminent end of the world as we know it and general financial chaos? How could that happen? It still doesn’t make any sense to me.
I don’t normally tend to conspiracy theories, but there are so many things wrong here it makes my head spin in disbelief.
Well, subprime was only a small part of the credit bubble, yet with derivatives and their multiplicative effects, poorly understand and very complicated, leverage*100 everywhere you look, and global links and dependencies between seemingly unrelated financial elements, it happened.
“Rush on this now”
Yes, he is, and I just posted a link to this in the live thread there:
"What got us into this mess initially were banks taking exorbitant, wild risks with other people's monies based on shaky assets and because of the enormous leverage, where they had $1 worth of assets and they were betting $30 on that $1, what we had was a crisis in the financial system."
"That led to a contraction of credit, which, in turn, meant businesses couldn't make payroll or make inventories, which meant that everybody became uncertain about the future of the economy, so people started making decisions accordingly, reducing investment, initiating layoffs, which, in turn, made things worse."
- Obama press conference last night
Of course this isn't a complete explanation, but since he was just responding to a question, it's probably not a bad summary. The thing I always wondered is: "Why were banks willing to take any chances at all in mortgage loans?" Obviously the answer is, as Obama says, because it wasn't their money.
The banks were able to borrow the money they were betting with. I think he might get the 30-1 leverage figure from the fact that the banks were able to borrow at something like 3%.
Thanks, M. You the man.
Bump to the top!
This really needs to be in breaking news.
Agreed. I put my money on Soros, too.
“I think he might get the 30-1 leverage figure from the fact that the banks were able to borrow at something like 3%.”
What happened was after they packaged the loans together in groups they offered them up as collateral for loans. The sellers also bought insurance on the collateralilzed loans to show the buyers that they really were good. This encouraged the buyer to not even look at whether the underlying loans were any good or not. Many of the loans were ‘no doc’ loans and ‘stated income’ and such, which would not be a good investment. But hey, they had insurance, right?
The insurance company, AIG, overextended their coverage way beyond what they should have. That’s why they had to get a huge bailout.
Banks loaned money based on fractional reserve banking principles to the tune of about about 10 to 1 on those loans.
The collateral was somehow used again to get other loans (I dont’ understand this part) so the multiplier kept going through the roof.
Fractional reserver banking falls apart at some point. You can’t have 1-3% reserves and maintain a banking system.
Nice Post! What everyone seems to forget, is EVERY Wire Transfer on earth is recorded through the SWIFT #. I do wire transfers for my business monthly. There can be no easier way to find where that money went on 9/15/08, than by tracking the SWIFT #. I humbly propose anyone that says otherwise is lying. You can’t just remove Billions of Dollars from anywhere w/out leaving a TRAIL. Period. Of Course, you’d have to trust the democratic controlled congress to investigate this occurrence, which will never be pursued.Some young reporter somewhere in the USA, who wants to make a name for themselves, should do some digging!
3 hours $5.5 trillion?
Would of been a GREAT time for one of those bank holidays.
Powers that Be fault!
Ususal Suspects: Soros, Russian Mafia, Al Qaeda Operatives.
You summed it up well.
(Though I think the taxpayers will have no choice...military rule and all.)