Bernanke said "it would have been the end of our economic system as we know it"
 

Everyone remembers that Henry Paulson and Ben Bernanke went into a closed session in Congress in mid-September of 2008 and scared the crap out of the assembled politicians. According to a (very rough) transcript of Rep. Paul Kanjorski (D-PA) on C-Span, here is what Paulson and Bernanke said:

It was about September 15th . ? On Thursday at about 11 o?clock in the morning the Federal Reserve noticed a tremendous drawdown of, uh, money market accounts in the United States to the tune of $550-billion was being drawn out in in a matter of an hour or two.

The Treasury opened up its window to help, and pumped in $105-billion into the system, and quickly realized it could not stem the tide. We were having an electronic run on the banks. They decided to close down the operation, to close down the money accounts. ? If they had not done that, in their estimation, by 2 PM that afternoon $5.5-trillion would have been withdrawn and would have collapsed the U.S. economy and within 24 hours the world economy would have collapsed.

We talked at that time about what would have happened. It would have been the end of our economic and our political system as we know it.

http://www.liveleak.com/view?i=ca2_1234032281

How can $550 Billion Disappear in "Electronic Run On the Banks" in such a short time and google knowing nothing about it?
Thats weird....
(Maybe the fed ceo's have a retirement plan? LOL)

he and his kind are enemies of free people

That's odd... how could this happend and I didn't know about it.

yeah that story came out last week.

http://www.ici.org/stats/mf/mm_data_2009.pdf

Looks like maybe $100 billion drop in total money market funds middle of September. Now maybe there was a bigger drop and then recovery. But there are plenty of weeks with changes on the order of $50 billion so it's not all that crazy. Maybe they got spooked, maybe not.

quick question: where where people or whoever putting the money?

How did 550B vanish ? Who were getting it out ? Regular people ?

Here were the real numbers. About 1/5 of what the Congressman said. About a 3 1/2% drop. One wonders what Bernanke and Paulson really said. maybe they said on the worst day that "If this continues at this pace for a week there could be $500 billion in withdrawals". Those certainly were frightening days for the credit markets and the financial system in general. At least a few people on GFY thought there was going to be "an uprising".

SAN FRANCISCO -- After one of the biggest money-market mutual funds broke the $1 per share benchmark and the Treasury pledged to insure money-fund assets, investors pulled a record $120.5 billion from 1,860 taxable and tax-exempt funds during the week ended Sept. 23, according to Money Fund Report, a service of iMoneyNet of Westborough, Mass. Total industry assets declined to $3.3 trillion, as both taxable and tax-free funds saw unprecedented one-week redemptions. Taxable institutional funds dropped by $95 billion during the seven-day period. One bright spot: Taxable retail funds, which added $3.6 billion. Tax-free fund assets, meanwhile, fell by $29 billion to $486.4 billion.

i told them this was going to happen 8 years ago!


or not.

if you can find the original story it was giant foreign investors.

China probably just went to the ATM for some walking around money.

New Bank of Sealey Serta Pillow Top. Branches in every bedroom?

why people don't bring this up...




2.3 Trillion Dollars missing at Pentagon 1 DAY before 9/11

:1orglaugh:1orglaugh

economy collapses thats worth nothing

nice words... :thumbsup:thumbsup:thumbsup:thumbsup:thumbsup:thum bsup:thumbsup