Rep. Kanjorski: $550 Billion Disappeared in “Electronic Run On the Banks”(11am,09/15(8?)/08)

Live Leak ^ | 02/07/09

[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.

[mpstan]

You are right. My husband and I had sold our IRAs investments into money markets in January 08. I became very unsettled with what was going on with the underlying MM investments i.e. commercial paper, SIVs etc. Thursday, September 18th I called Vanguard/Fidelity and had them send all of the cash from the money markets and mail us a check to deposit in our bank in a rollover. I didn’t know at that time; the next morning the Pres. was going to announce that all money markets were guaranteed. This announcement is what finally stopped the blood letting from the money markets. NOw we are stuck at a bank for 1 year as I didn’t do custodial transfer. If I withdraw the funds and take possession due to a bank run all of our retirement will be subject to penalties and taxes. However, at the time I felt I was doing the prudent thing.

[Bellflower]

ping for later or should I say earlier read

[UCANSEE2]

Well, the USA may be going xtink.

[Treeless Branch]

I keep thinking about that story re someone who shorted the market for some crazy amount of money some time last summer. The person basically bet that a depression would occur. He was off by a few months.