Skip to comments.The electronic run on banks nobody seemed to notice
Posted on 01/17/2010 7:22:01 AM PST by opentalk
Sixteen months after the 11 a.m. simultaneous withdrawal of billions of dollars out of money market accounts in the aftermath of Lehmans demise a few days earlier, no one seems to care about the dimensions of this event.
After all, this catastrophic event did not have quite the physicality of say an actual bank run.
There were no investors standing in line waiting to take their money out for Americans to see just who they werefrom what country, wearing what kind of clothes, honest or squirrelly looking, working in tandem with each other? Just computer generated orders simultaneously withdrawing billions of dollars adding up to $550 billion within about an hour.
And, certainly, if it were an act of economic terrorism, which no one seems to have the imagination or cojones to raise, the visual is not there. No Boeing 737 ramming into the Twin Towers, bursting into flames, innocent victims burning alive jumping out the windows to their death, prior to the buildings collapse into rubble.
But, make no mistake, this electronic run on the banks of Sept. 18, 2008, was every bit as catastrophic, with numerous victims.
Sure, it could be pure coincidence that exactly at 11 a.m. a wave of concerned investors all decided it was time to electronically withdraw their funds thus creating this crescendo drawdown effect setting in motion a worldwide panic. It could be coincidence. But, its doubtful.
The fact that the identities of those who simultaneously decided to withdraw their money at 11 a.m. on Sep. 18, precipitating this panic, were never released, does lead one to question whether or not something sinister was at work.
Is there no one else with even the vaguest curiosity to ask if it was a coincidence or not? And, to suggest maybe an investigation is in order to deliver that vaunted transparency that voters seemed to believe they would get after the 2008 elections.
If nothing sinister was at work, then why so much secrecy concerning the destination of this $550 billion in money withdrawn on Thursday, Sept. 18, and those responsible for redirecting these funds out of the U.S. money markets.
Surely the money didnt go back into the American economy.
No, $550 billion was drained away from the American economy, the consequences of which we suffer to this day.
The exact contours of this event were described by Rep. Paul Kanjorski (D-Pa.) on C-SPAN on Wednesday, Feb. 11, two days after the 200th anniversary of Abe Lincolns birth.
An enraged caller had just erupted over the ill-advised $700 billion bailout a few months earlier and Rep. Kanjorski felt pressed to reveal what Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke had told Congress behind closed doors, which so shocked them into supporting this mind-bogglingly huge bailout.
On Thursday [Sept. 18, 2008] at about 11 oclock in the morning, Kanjorski began, the Federal Reserve noticed the tremendous drawdown of money market accounts in the United States to the tune of $550 billion dollars 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.
At that point, officials realized, Kanjorski relates, We were having an electronic run on the banks.
In response, Kanjorski continued, They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldnt be further panic out there and thats what actually happened.
And, if nothing had been done, Kanjorski revealed, their estimation was that by two oclock that afternoon, five and 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 (which would have meant) the end of our economic system and our political system as we know it.
Kanjorski concluded, Someone threw us in the middle of the Atlantic Ocean without a life raft. And, were trying to determine which is the closest shore, and whether theres any chance in the world to swim that far. We dont know.
But why is no one in the least bit curious to know who that someone is who threw us in the middle of the Atlantic Ocean without a life raftthe consequences of which have so damaged our economys job-creating engine?
This writer, for one, would like to know.
note the the curious silence of wall street, obama, bush, the us congress, the treasury secretary, and the world media
I’m very curious...wish I had the skills to find out where the money went. If I was a hacker, I’d be all over this. It has to be traceable...yes?
Ever since watching the Kandorski video, I’ve thought exactly as you. Since the withdrawals were electronic, the banks know those who were taking out the money. It is no secret. I’ve always thought the Democrats were behind it one way or the other.
So, who was doing the withdrawing?
Because it helped elect O Bama, and that was good enough for his media.
Very interesting. I’d like to see a viral buzz about this begin.
What has been done to keep this from ever happening again???
Did not know about this til reading this post - wasn’t feeling too well this morning....now feel a bit sicker.
But, what the hay....good football coming on this afternoon and earthquake election coming Jan 19.....
And God is still on the throne....
Life is good.
exactly...if you know who, you can answer why.
“The fact that the identities of those who simultaneously decided to withdraw their money at 11 a.m. on Sep. 18, precipitating this panic, were never released, does lead one to question whether or not something sinister was at work.” ... Some businesses are too big to fail, or be allowed to fail, as in the unions would be too heavily impacted. Well, the details of this thuggery are traceable because with every withdrawal there had ot be a target transfer. But we see that the truth of it is being avoided. Someone/something is too big to be exposed, too big to be investigated. We the people are no longer the sovereigns. We are the subjects living under a federal oligarchy.
But they're not talking. Why is that, do you think?
It does need to pushed to the forefront; maybe there'll be renewed Congressional interest in it around, say, November 2010.
Soros has his fingerprints all over this.....ensuring a ‘Rat victory and shoving socialism down our throats.....the timing and depth of this event was done on purpose....This event was engineered from the get go as the Rat’s October surprise .and it will lead to their demise. Let the investigation begin and end at the hangman’s noose. This was done to us on purpose to ensure the commie takeover.
It’s their money. They can take it out any time they wish. If the banks can’t cover it, that’s their own dam stupid worthless fault. Quit making bad loans.
I still would like to know who the people were though, and where the bulk of the money went. My suspicion is middle east oil tycoons. They’ve been talking about an oil bourse trading in petro dollars for awhile. I think they saw their chance to weaken the dollar and loosen it’s grip on the oil markets.
Deep capture covers this. Almost certainly hedge funds with short position.
Soros and friends?
oh the list just goes on and on ...
“no one seems to care about the dimensions of this event.”
of course not...
“Bush’s Fault!!(tm)” is all you need to know!!
My tin-hatted opinion?
McCain was up TWO and rising. Some Middle Eastern Dubai-based sources wanted to make sure Obama became President.
ANOTHER thing you will never hear about in the media is how Democrat-supporting Goldman-Sach’s was manipulating Oil Speculation markets in late-2007/2008. Note how fast Pelosi’s “Evil Oil Companies!” hearings ended when that tidbit came out?
Oh good grief. It wasn’t a conspiracy. It wasn’t terrorism. It’s not even a secret.
The money was withdrawn because one of the larger Money Market companies “broke the buck” because the manager was investing in risky securities instead of in safe products.
Since Money Market accounts weren’t insured back then, everyone panicked and withdrew their money so that they wouldn’t get stuck with the loss.
That’s why there was a massive electronic run.
Really, some of you people are looking for conspiracies as if they are Easter Egg hunts.
Soros shorted the USA after driving crude to $140 per barrel. Can anyone say October surprise?
It is impossible for the transactions that drove this withdrawal to remain anonymous. I find that the timing of the withdrawals seem to coincide with a surge of john McCain in the polls. We, the American people need to know where these orders to withdraw originated and where was the money transferred to. If the economy can be blown to bits by actions such as this, we need to know so it cannot be replicated in the future. Perhaps, we will see a replay of this for the 2010 elections.
Sunlight seems to be the only way to change it. The Fed has to know, which makes it even more disturbing.
I only saw a small blurb about it way back. I have always wondered who stole the money.
It described the events of early in 08 including Schummer causing the run on Indy Mack and the Feds setting a precedent of saving the banks as well as some other curious events before Sept. 18th.
It's also curious to note that the events of Sept. 18th all but guaranteed zer0's election as it was just 6 weeks before people voted.
We got set up for a commie takeover, no doubt in my mind.
I wonder if a FOIA would apply.
I didn’t know we were all suppose to be finance experts. /s
During the spring and summer of 2008, when someone explained to me how shaky the underpinnings of traded short term deposits were, I made sure the money market component of my modest brokerage account was transferred to my bank (FDIC checking account) and essentially did the same with variable annuities by making sure that there was little or no “fixed” or bond component in the funds selected. It turned out that only about $3,000 was at risk, but what the heck, anything not FDIC insured should be looked at carefully in these hazardous economic times.
The brokerage money market rates are sometimes negative even now, partly, they tell me, because of the expense of SEC paper work, prospectuses, etc.
Someone/something is too big to be exposed, too big to be investigated. We the people are no longer the sovereigns. We are the subjects living under a federal oligarchy.
Remember all the snide cynicism on FR about conspiracy and the tin foil hat crap.
There are very sinister things going on, and the Media is complicit. John McCain was a red herring.
The solution is quite direct - Dismantle the revenue and authority of the US Federal Government to the Constitutional level originally intended. And don't allow illegal immigration. There will still be a "united states," but within those parameters the States, the Communities, the Family, the Individual, can prosper, dealing with our own decisions. For education and social services that pathway is obvious.
No honey, you’re just supposed to know to go to google.com and type in whatever it is that you are questioning.
That’s all that I did. One google search and I had the answer to why there was a run in September of 2008.
It’s like going to Snopes whenever you get a conspiracy chain email letter.
It’s really easy to do research in the Internet Age.
The money this article is talking about was transfered out of the US, though. I think.
Why at 11:00 on the 18th? The blog you link was written on the 16th.
Out of no-where, in the space of less than 2 hours, the Federal Reserve noticed a tremendous drawdown of money market accounts
A Contrived Crisis? - You Decide
I'm sorry I no longer have any of the threads that referenced the French beginning of the market collapse .I am posting from memory, which is the reason for the (?)s. I remember that a Freeper (was it you?) mentioned it some months back in rebuttal to a conspiracy theory post blaming Soros and other conspirators for taking out money to create a BHO victory.That poster stated that since August, s/he and other coworkers had been braced for an electronic run-that the markets were so fragile that anything might set off the run, and then the run would snowball as everyone would try to get out first . Then the event to which you allude took place, and the rest is history.
I am sorry now that I did not save that freeper's post, as I am not in any way, shape ,or form in the markets, and so I can only post what I can recall of a post I read ages ago. :-(
That’s the one, thank you~
Color me paranoid. Was this current crisis manufactured? I dont know. Does the possibility exist? You decide.
* Six months later, Jan 2, 2009, a seven-member group of investors agreed to buy the remnants of failed lender IndyMac for $13.9 billion. Other investors included a fund controlled by billionaire George Soros Fund Management
(and Bush was not on the inside)
But the Fed is private, not part of the federal government.
Interesting is that there are no GOP Talk show hosts or Fox News even mentioning this.
And, I do not think this was done to smite Bush or cost McCain the election. I think this was done by the international financiers to get bailout money....the current Liberal Free Trade Globalist economy is tanking...and cannot sustain itself.
Note that Soros, Bush 41 and 43, the Clintons, Al Gore, Jimmy Carter, John McCain, Barack Obama, a large number of the DNC and GOP Congress....are all Liberal Free Trader Globalists....they think Globally instead of American when it comes to economics.
Until we rid ourselves of internationalism....we are always going to have these problems. If you are still supporting Liberal Free Trade Globalism and International Economics of any sort.....you tacitly approve such doings....and also, you are an Economic Anti-American
You had the answers to whatever article you were reading.
This may be part of the reason they are threaten by Sarah Palin. She has the ability to rally people behind serving America and not internationalism
The Freedom of Information Act (FOIA), 5 U.S.C. § 552, generally provides that any person has a right of access to federal agency records, unless the records (or any portion of the records) are protected from disclosure by one of FOIA's nine exemptions or by one of three special law enforcement record exclusions.
The Federal Reserve Board (Board) maintains public and nonpublic records. Public records are available at the Board's conventional reading room and electronic reading room. A FOIA request is not required to obtain these materials.
The submission of a FOIA request is required to obtain nonpublic records. If you cannot locate the records or information you seek on the Board's web site, you may wish to file a FOIA request (making a request).
> George Soros
That's just crazy talk < /sarc>
Just like the issue of $778 million ($150 million in September 2008) in campaign dollars that Obama received in 2008, much of it coming from 37,000 foreign sources, mostly through untraceable, one-time use cash gift cards (source Obama's Secret Campaign Cash: Has $63 Million Flowed from Foreign Sources?).
The FEC surely would have revealed a scandal by now, if only Obama hadn't been the first major presidential candidate in American history NOT to accept funds from the Presidential Election Campaign Funds ... and therefore NOT subject to any FEC investigation.
Foreign donations to Obama's campaign ... indeed.
I believe it would be traceable and feel it would go right to the string pullers of the current admin. This crisis was probably created to set the stage for their manipulation of the financial industry. And GWB took the bait and set the ball rolling.
Praise be to GOD!
Is this connected to the stories about the Russians getting into our financial systems and stealing billions?