Skip to comments.Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run On the Banks" ( Sept 15,2008)
Posted on 02/16/2009 6:42:56 PM PST by Ernest_at_the_Beach
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.
Here is a transcript of what Kanjorski says in the video:
"On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two.
Money was being removed electronically.
The treasury tried to help with $150 Billion.
But could not stem the tide.
It was an electronic run on the banks
The treasury intervened but had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawled and collapsed and within 24 hours the world economy."
Kanjorski does not provide further details.
A Google search to verify this produces zero results.
(Excerpt) Read more at liveleak.com ...
That money had to go somewhere... it didn’t just vanish.
See the Video at Live Leak...
When we are talking about “digital dollars” it can just vanish in cyberspace.
Southerners I bet
The triggering of the October Surprise to beat all October Surprises?
Minor detail, Thursday was Sept. 18, not Sept. 15.
I’d rather be with a bunch of ‘Southerners’ than one snobby northeasterner.
Earlier Thread? http://www.freerepublic.com/focus/f-bloggers/2183367/posts
So would I. I just loved the “withdrawled”.
One theory I read was that it was the Thursday of Sept. 11.
Has anyone traced the cash Obysmal spent on his campaign? I heard it was over half a billion.
I have read other stories that put it on Sept. 18.
To me, common sense would put it on Sept 18. Certainly he would remember if it was the 11th.
Who’s account did it come out of? Where did it go. It should be relatively easy to trace.
Did it just dissappear? Can it happen again?
Too many unanswered questions and no one seems to be trying to get answers.
It came out of my account, and I WANT IT BACK.
It WAS Sept. 18 and it was a direct result of the failure of Lehman Bros. on the 15th. That precipitated a Money Market Mutual fund to “break the buck” given their exposure to Lehman Bros. What followed was many institutional AND retail (average Joes) investors to simply MOVE out of one type of Money Market funds to a US Treasury Money Market fund comprised entirely of US Treasury securities.This is why in short order the yield on these short term US Treasury securities went close to zero,then slightly below zero yield. People were saying “I want return OF capital more than return on capital.”
Please know I am a devout conservative, deeply concerned about the current government and worried sick about our country’s future, but this was NOT an October surpirse OR George Soros or anything else malicious. It was simply a result of the mortgage meltdown and mortgage securities owned by Bear Stearns which failed in March and then Lehman Bros. Keep in mind at about the same time the government took over Fannie and Freddie and AIG.