Posted on 02/11/2009 3:03:27 AM PST by Halfmanhalfamazing
RUSH: I want you to listen to this, Paul Kanjorski. He's a Democrat member of Congress from Pennsylvania. He was on C-SPAN's Washington Journal on January 27th.
KANJORSKI: On Thursday at about 11 o'clock in the morning --
RUSH: Stop the tape a second. Go back and recue this. He's talking about September the 18th here. Let me tease you even further. September the 18th is the day last year that the world economy almost came to an end. Don't smirk. It's true, Snerdley. That's what Kanjorski is saying. So he's talking here about Thursday, September the 18th.
KANJORSKI: On Thursday at about 11 o'clock in the morning the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States, to the tune of $550 billion was being drawn out in a matter of an hour or two. The Treasury opened up its window to help. It pumped $105 billion in the system and quickly realized that they could not stem the tide; we were having an electronic run on the banks. 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.
RUSH: Do you remember this? This is the day I think that the Atlanta banks ran out of one-hundred-dollar bills. But now stop and think of this: A $550 billion withdrawal from money market funds in one-to-two hours. I am convinced -- and there's one more sound bite to go here -- I am convinced that this is what they took to the White House and said to President Bush, "We have got a disaster, you have got to get on board with a bailout," which came later on in October, "you've got to get on board with this $700 billion, the TARP 1," all because 550 -- now, what precipitated this? Here's the second Kanjorski sound bite.
KANJORSKI: If they had not done that, their estimation was that by two o'clock that afternoon, five-and-a-half trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it. We're really no better off today than we were three months ago because we've had a decrease in the equity positions of banks because other assets are going sour by the moment.
RUSH: Now, this is January 27th, Kanjorski is talking about this, and we have to allow, since Kanjorski is a Democrat he's part of the Pelosi team, we have to allow that some of his comment here is being flavored. When he ends up saying we're no better off today than we were three months ago, some of this is obviously oriented toward panic and getting people to go along with the bailout today, but let's leave that aside because that's traditional Democrat Party politics. If they had not done that, if that $550 billion-dollar withdrawal in an hour or two had not been stopped, if they hadn't closed the windows, he says that five-and-a-half trillion would have been drawn out of the money market system of the United States. Now, when I hear money market I think of savings accounts, higher interest rates than passbook savings at the old downtown building and loan where people park their money temporarily 'til they decide where to put it permanently. He says five-and-a-half trillion would have vanished from the banking system, would have collapsed the entire economy of the US and within 24 hours the world economy would have collapsed.
Now, we've gotta allow here for some exaggeration. It's amazing this was said on C-SPAN on Thursday, January 27th, and nobody picked up on it. We got it from a website called LiveLeak. They were rummaging through things, and they found this. Now, let's assume for a second here that elements of this are true. Let's assume that there was a $550 billion run, electronic run on the banks and money market accounts in one to two hours. The question is who was doing this? Who was withdrawing all this money? And the next question is why? That's where my mind starts exploding, and this is dangerous to have these explosions going this way. Could it have been George Soros? Could it have been a consortium of countries -- Russia, China, Venezuela -- countries that are eager to have Barack Obama elected because they know that will make it easier for them to continue their own foreign policies in the world? In the meantime, five-and-a-half billion dollars in one to two hours, that can probably be confirmed. The five-and-a-half trillion is speculation based on the rate at which money was coming out. We could check that the Fed stopped the trading windows, they closed the window. We do know they were pumping money into the system left and right. And remember when the Federal Reserve loaned elements, $2 trillion and we weren't told who got the money? And we still haven't been told who got the money.
We know that last fall, the Federal Reserve lent $2 trillion to somebody or a series of somebodies, and we still don't know where it went. We know last year that we had a crisis on our hands and everybody was saying if we didn't do this today the country was finished and they got Bush on board, they got Paulson on board. Obviously this kind of news, if somebody from the Fed shows up and Bernanke and Paulson say, "Hey, we got a chance here of losing five-and-a-half trillion dollars if we don't do something," I mean that's gotta scare anybody into some sort of action to stem the tide. RUSH: We have an AP-Obama story here that targets the date of this run on money market accounts to September 16th. It was Kanjorski on C-SPAN on January 27th, said it was Thursday the 18th. Here's the AP story: "A money-market mutual fund that 'broke the buck' amid a rush of orders to pull out cash has begun returning an initial $26 billion to investors who had been unable to access their money for more than a month. ... On Sept. 16, the rapid sell-off of assets caused the value of fund assets to fall to 97 cents for each investor dollar put in -- the first instance in 14 years of a money-market mutual fund 'breaking the buck,' or having its per-share value fall below $1. Reserve Management froze redemption orders. That led institutional investors to pull out cash..." I think both dates are right. September 16th, the rapid sell-off begins and "[t]hat led institutional investors to pull out cash from that fund and others, creating fears about the safety of the $3.4 trillion in assets held in money-market funds, and a new temporary government money fund guarantee program.'" It's sort of just a casual, hey, no-big-deal kind of story from the Associated Press -- and here again is Kanjorski talking about this. Let's go back to these two sound bites, Paul Kanjorski (Democrat-Pennsylvania) on C-SPAN's Washington Journal on January 27th.
KANJORSKI: On Thursday at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to the tune of $550 billion was like being drawn out in a matter of an hour or two. The Treasury opened up its window to help. They pumped $105 billion in the system and quickly realized that they could not stem the tide; we were having an electronic run on the banks. 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.
RUSH: By the way, I should tell you that Kanjorski's source for this is none other than Bernanke -- Ben Bernanke, the Federal Reserve -- and the Treasury secretary, Hank Paulson. They are the two figures that told members of Congress what was going on with this initial run of $550 billion, an electronic run on the banks, money market accounts, investor accounts here. He goes on to say this, if they had not stepped in to stop this, if they had not closed the window...
KANJORSKI: If they had not done that, their estimation was that by two o'clock that afternoon, $5-1/2 trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it. We're really no better off today than we were three months because we had a decrease in the equity positions of banks because other assets are going sour by the moment.
RUSH: So the last part, I think that's just salesmanship for doing something now to get the stimulus bill passed, although Kanjorski is among some Democrats starting to shift to the cant that more time is needed to make a correct decision this time; which I think is one of the reasons Geithner postponed his announcement to today from last week or even today. So, you know, I have been suspicious of all this that happened last fall. It just seemed too perfectly timed. Now we know that these are not individual money market accounts like you would have had to withdraw your money. This is money invested in a mutual fund money market account. So it is quite possible somebody could have started a run on this thing and the word spread, and it did -- and the $550 billion withdrawal in one hour would panic anybody. So there's so much to this. You know, it's always the case that there's so much more going on in all this that we don't know. The Drive-By Media, any longer, is worthless in ferreting out the truth involved in events. They totally exist on the surface. They exist with a path of least resistance particularly with Democrats in power, because with the presumption that Democrats could abuse power or commit ethics violations just doesn't even cross the radar. It doesn't even show up on the radar. It's not possible for Democrats to behave in that fashion, and so all this stuff goes on below the surface and we find out about it much later after the fact.
And just who gave you the right to elevate the Idiot McCain to "Doofus?"
A "Doofus" has warm and fuzzy overtones, while McCain still deserves to have his private parts dribbled around the courthouse square by malignant Kenyan dwarves. And he is still dunning me for money!
He will be remembered as the man who put the "Mandatory" in Mandatory Retirement.
.....basically fake money.....
Actually, all money is now electronic blips on a ledger. The bills are merely physical representations of the ledger entries. Electrons are invisible and nearly impossible to handle.
This type of talk is of great interest to me.
Money systems have collapsed (surprisingly frequently) without ending the political system, much less "the world".
The present fraudulent and insolvent international money system is not long for this world.
When it ends, it will reveal much about the state of our equally fraudulent and morally insolvent political system.
If we had remained a virtuous republic, the insolvent banks would be closed, the Federal Reserve would be dissolved, Congress would use its power to coin money and regulate the value thereof to refloat viable businesses and would issue new currency, and in six months or less (from September 18, that would be next month) we'd be up and running again.
That we are still stuck in the pits of fraud and theft says a lot, not about the money system, but about our politics. THAT'S scary.
Dow closes down 381 on bailout plan disappointment
Feb. 10, 2009
(AP) — Investors are turning skeptical about the government’s latest bank bailout plan and sent stocks reeling Tuesday.
The Dow Jones industrial average lost 381.99 on points on Tuesday to close at 7,888.88.
Local Dow components were also lower. Boeing Co. was down $2.59 to $40.21, Kraft Foods Inc. lost 90 cents to $24.98, Caterpillar Inc. fell $1.80 to $30.92 and McDonald’s Corp. was down $1.74 to $57.28.
The Crain’s Chicago Business index, compiled by Bloomberg L.P., was down 2.97 points, or 4.6 percent, closing at 62.05.
Broader indices were also down. The Standard & Poor’s 500 index dropped 42.73 points to 827.16, while the Nasdaq composite index was down 66.83 to 1,524.73.
http://www.chicagobusiness.com/cgi-bin/news.pl?id=32958
No, this is not ridiculous. I kept telling my husband that this sort of thing doesn't just happen almost over night, and world wide financial problems at the same time. Something or someone was behind this. It was a manufactured crisis, pure and simple. The economy went south big time, over night, all at once.
Consider our previous discussion and this reasoned post.
There will be blame. There will likely be action. I can feel it in my bones.
“IMO it was an intentional act, not a bunch of panicked people.”
They did not say who was responsible for the 550 billion.
Was it a government agency that deposited the money over time, then removed it in an hour or two?
Thus a manufactured scenario to force Bush to act, and approve the 750 billion?
ping
......Money systems have collapsed (surprisingly frequently) without ending the political system.....
I’m reading a book called The Power of Gold that details money systems and the metallic standard since the beginning. There was the probability of a collapse earlier and JP Morgan worked with the Rothschilds to float a bond fund to defuse the crisis and right the banks. I think President Cleveland didn’t like it. JP Morgan went to DC and demanded to see the President. In the meeting he told Cleveland that if they didn’t go through with the deal “It’ll all be over by 3:00 this afternoon”. At some point during the meeting, The President was told that the last gold in the till was about to be gone. He accepted Morgan’s proposal and the economy pretty much revived quickly.
The street was warned and ready for the break in Money Market $1/share value. The Lehman paper default was huge news that triggered an industry wide ahhhhh panic.
Rush conceded this bordered on conspiracy, but Schumer’s comments about the Cal bank about to fail a few weeks prior started the fall. Then Reid hinted that AIG was about to fail
Both comments were made for no apparent reason and unsolicited, imho intended to create instability.
This could have been a Soros manipulated plot. Wouldn’t surprise me.
Not correct. AIG had already failed. Reid hinted that other insurance companies would fail (including MetLife, my insurance company, which took a huge equity hit).
Even the dollar bills are worthless if the faith in the government backing them is lost. In the end all they are is pretty pieces of paper with their REAL value determined by those in the marketplace who will decide if they will accept them in trade for the goods and services they offer.
Agree with you.....it was panic, plain and simple.
Conspiracies take too many people keeping too many secrets to be prevalent.
700 million is chump change; I believe you meant 700 Billion
There is an unholy consortium of Wall Street swindlers and the corrupt Congress that has undermined the country. We well could lose the government over this.
I got a email that AIG was fastlaned by Congress because AIG insured Congress pension system. Any input?
What started the fire is debatable. We don’t have enough data to say.
What is not debatable is that our political elites immediately set about pouring gasoline on the blaze, and continue to do so.
The inferno they’re creating may consume us all.
no clue. Wouldn’t surprise me though. AIG was a strong insurance company and had lots of friends in politics. Too strong to fail.
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.
If the banks fail and the Government defaults, that WILL be the trigger for mass outrage. You will see blood running in the street.
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