This is a comment from the PJM site:
22. General P. Malaise
I remember hearing that there was an extreme run on several financial institution in the final months of the Bush presidency.
this was never explain and only Rush Limbaugh talked about it.
so what happened and why was it unreported?
March 1, 2011 - 5:50 am Link to this Comment | Reply
Does anybody know any more about this? If these things really happened and were things that Soros could have orchestrated it would fit the picture of Soros trying to convince critical people that he had been the power behind the September run and was willing and able to do it again if certain people didn’t “cooperate” with him - like a dog owner holding a pitbull on a leash and letting it nip at those who aren’t sure whether they really need to cooperate...
Of course, Castro and Chavez were both saying that the US should switch to communism, “since capitalism had failed”, the World Bank was having sessions deciding what to do “since capitalism had failed”, and Ahmadinejad and Al Qaeda were both saying the US/world should try Islamic finance “since capitalism had failed”.
So Soros’ allies from both sides - the communists and the Islamists - were trying to bill the whole thing as the failure of capitalism and may have been trying to do further damage in the hopes that it would push capitalism over the edge and be the final crisis to overthrow capitalism.
But if that were the case I think they would have gotten the media to make a big show of it, in order for it to have the max effect. To make the run and then have the media hide it is more like a signal intended for just a few people.
“Does anybody know any more about this?”
Yes...I repeatedly posted the info below in early 2009, but it appeared to be far more advantageous for most here to blame President Bush and of course, TARP.
Secret “closed door” meeting with Congress (3/14/08)
Not only did members discuss new surveillance provisions as was the publicly stated reason for the closed door session, they also discussed:
1. the imminent collapse of the U.S. economy to occur by September 2008,
2. the imminent collapse of US federal government finances by February 2009,
3. the possibility of Civil War inside the USA as a result of the collapse,
Kanjorski and the 550bil
Live Leak? | 3-2-2009 | Sequoyah101
Rep. Kanjorski: $550 Billion Disappeared in “Electronic Run On the Banks”
http://www.youtube.com/watch?v=_NMu1mFao3w [Not available on You Tube 9-09]
RUSH HAS THE ENTIRE SEGMENT FROM THE 1-27-09 C-SPAN VIDEO HERE:
[NOTE:the clip times will be off a little as the transcript was done from the YouTube vid]
starting at 2:08 into the clip.
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. [Rush leaves off the above part and begins here
On Thursday [which would have been 9-11] at about 11 oclock 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 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.
[ found this article substantiating Kanjorskis claim, albeit was the 16th not 15th ]
[also this video of Kucinich discussing the closed door meeting]
They decided to close the operation, close down the money accounts, and announce a guarantee of $250k per account so there wouldnt be further panic out there, and thats what actually happened.
If they had not done that, their estimation was that by 2:00 that afternoon, $5.5 TRILLION wouldve been drawn out of the MM system of the US, wouldve collapsed the entire economy of the US and w/in 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 thats why when they made the point, weve got to act and do things quickly we did it.
3:00 — Now Sec Paulson said lets buy out these sub-prime mortgages, thats when he came to congress, but he said give us latitude and large authority to do many things as we decide necessary and give us $700 B to do that.
Shortly after we enacted our bill with those very broad powers, the UK came out and said No, we dont have enough money to buy toxic assets. Instead were going to put our money into banks so that their equity grows and their not bankrupt. And so the UK started that process and thats true, it was much cheaper to put money in banks .. as equity investments than to start buying their bad assets because it came early we determined we would probably have to spend 3-4 Trillion of taxpayers money to buy these bad assets and we didnt have that, we only had 700 Billion.
So Paulsen made a complete switch — went in and started putting money in buying securities and re-investing in the banks of the US. Why? Because if you dont have a banking system, you dont have an economy. And we and although we did that, it wasnt enough money and as fast as we did that, the economy has been falling and the reason that last week, were really no better off today than we were 3 months ago because weve had a decrease in the equity positions of bank, because the other assets are going sour by the moment.
5:09 — Now weve gotta make some decisions. Do we pour more money in to what extent that money goes in — I myself think we ought to take the time, analyze where we are, have the people understand -— when you listen to the lady that just got off the telephone, she is near panic - and - she doesnt think her governments acting properly or acting in her behalf. I think its important that we start informing that lady as to what really were the facts, what happened, and get input from her — maybe she has a better idea. You know were not any geniuses in economics or finances on the hill. Were representatives of the people. We ought to take our time, but let the people know this is a very difficult struggle somebody 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 there is any chance in the world to swim that far WE DONT KNOW!
[What I want to know is WHY is no one talking about this? What are they hiding? They were tracking the withdrawals and decided to close down the money accounts. They MUST know who was withdrawing the money and where it was going. ]
Also see my previous post. If you want more I have tons of info from that time frame.