This is un-frickin-believable. The financial crisis was deliberate, planned, staged. Who made the run? "Someone threw us in the middle of the Atlantic ocean without a life raft. We are
trying to determine which is the closest shore and whether there is any chance
in the world to swim that far. We don't know."
Electronic Run On Banks - $550 Billion Withdrawn In 1 Hour, Federal Reserve Halts Withdrawals - US Economy Would Have Collapsed Capitalism Gone Wild hat tip Cathy
Rep. Paul Kanjorski of Pennsylvania
explains what former Treasury Secretary Paulson and Fed Chairman
Bernanke told congress
during the September 2008 closed door session. During the first third of the
video an enraged caller is ranting to Rep. Kanjorski about how wasteful the
first $700 billion bailout was. The best part is 2 minutes and 15 seconds into
the tape where Rep. Kanjorski reveals what Paulson and Bernanke told congress
that shocked them into supporting the first $700 billion bailout.
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, opened their window and pumped in $150 Billion but quickly realized they could not stem the tide. We were having an electronic run on the banks. So they decided to closed down the accounts.
Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.
Kanjorski also explains why Paulson spent the bailout money differently than he originally proposed.
Some other gems from the recording:
It would have been the end of our economic and political system.
We would have had to spend 3 to 4 Trillion dollars to buy up all the toxic assets. But we didn't have that much we only had 700 Billion.
Without a banking system you don't have an economy.
We are no better off now than we were three months ago.
Someone threw us in the middle of the Atlantic ocean without a life raft. We are trying to determine which is the closest shore and whether there is any chance in the world to swim that far. We don't know.
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, opened their window and pumped in $150 Billion but quickly realized they could not stem the tide. We were having an electronic run on the banks. So they decided to closed down the accounts.
Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.
Kanjorski also explains why Paulson spent the bailout money differently than he originally proposed.
Some other gems from the recording:
It would have been the end of our economic and political system.
We would have had to spend 3 to 4 Trillion dollars to buy up all the toxic assets. But we didn't have that much we only had 700 Billion.
Without a banking system you don't have an economy.
We are no better off now than we were three months ago.
Someone threw us in the middle of the Atlantic ocean without a life raft. We are trying to determine which is the closest shore and whether there is any chance in the world to swim that far. We don't know.
More to think about. Somebody took a lot of money out of the banks. A lot.
So where did it go?
Who to?
And who got it? When? And where?
Somebody knows. Those transactions have been investigated, and
somebody knows. But they ain't talking, are they?
John Jay posits - there has to be a reason why:
--this hasn't been heretofore revealed
--why those who received the deposits haven't been identified
--why there is no explanation for their motives, and
--why this has just now been revealed.
The motive part is very interesting, isn't it? Now, a person does no
wrong, in and of itself, by taking his money from his accounts, perfectly legal,
and absolutely unpreventable by any means other than the government shutting down or
closing the market, as it did, to prevent/stop the run.
A run is a banker's term of art, and it is like a herd stampede, or panic,
or a psychosis of a lot of people.
They say 4 or 5 trillion dollars could have been emptied out of the bank by
the end of that business day. Presumably, it could not have gone all to one
entity, else that entity just could have gone back when the markets opened, and
continued to withdraw funds. So, if it were designed as action to induce a
panic, it had to have been done in a way that the new would spread quickly, go
"viral" as it were, to others holding funds or control over funds in similar
banking institutions/markets. So, the transaction had to be public, or at least
traceable, because they had to be noticeable, and they had to instill a panic so
that the run would continue, and people would be noticing what was happening and
would move to preserve and protect what money they could access.
So, it wasn't silent.
It wasn't stealth.
Just the opposite. It had to be noticed, to work, to induce the panic in
the number of people required to induce the panic.
So, the people who do such things, who monitor who and where the orders
come from, and who keep track of whose accounts the money is taken from, have to
have been able to figure that out, and who was responsible.
Yet, they do not tell us.
Why?
They should be able to.
There is one more context. People where really abuzz trying to stop this
latest round of Obama legislation, and considerable heat was being brought to
bear on this.
Obama & his minions choose this C-span broadcast/interview, complete with screaming put-upon lady, so that Rep. Kanjorsky (Democrat, Pennsylvania) can tell us all just how close we came to financial panic and collapse, no doubt to stir us to support for Obama.
Can there be any other reason for it. Seems to me, you'd kinda want to
keep a lid on it,just like everybody did.
Now, the other question that comes to my mind, is just when the Republicans
went into the tank on the republic election. It is too bad we don't have the
collective memory to remember just when McCain officially threw in the towel,
and whether it had any connection to this. He most assuredly would have known. Palin most assuredly would not have, in all likelihood.
The Wall Street boys knew.
The regulators, the Federal Reserve knew, and nary a boo, peep or squeak out
of any of 'em, until now.
A Congress that can keep a secret? Pretty unheard of in this day and age.
but, up til now .... .
So, why bust the news now?
And while I do not pretend to be on the inside of any of these nefarious machinations - it can't help but raise a red that the US treasury department, one week after nationalizing the banks, is giving seminars in Islamic finance and George Soros is buying our assets from the FDIC.
And WTF did Chuck Schumer know and when did he know it?
And while I do not pretend to be on the inside of any of these nefarious machinations - it can't help but raise a red that the US treasury department, one week after nationalizing the banks, is giving seminars in Islamic finance and George Soros is buying our assets from the FDIC.
And WTF did Chuck Schumer know and when did he know it?
Look Who's Buying IndyMac Larry Johnson, American Thinker
The FDIC has just announced that a consortium of private equity and hedge fund firms would be buying IndyMac. IndyMac was an independent "bridge bank" spun off of Countrywide Mortgage in the late 90s. IndyMac acted as a "bridge bank" to Fannie Mae and Freddie Mac.
New York Democrat Charles Shumer precipitated the fall of IndyMac in May of 2008 by releasing "inside" information that the mortgage company was in dire financial straits. This disclosure created the initial "bank run" that is credited by many economists as the initial trigger that prompted the current mortgage crisis. The FDIC took over the operations of IndyMac in late summer of 2008.
So much for history. George Soros is in on the deal to buy IndyMac from the FDIC. Soros has a long history of making loads of money by first creating a financial crisis and then stepping in to grab up the bargains. Perhaps the most famous example of this tactic is "Black Wednesday," when Soros nearly sunk the entire economy of Great Britain through currency speculation.
George Soros has helped bankroll the campaigns of the Democrats in Congress who created this mess. Now, it appears, he is cashing in on his investment.
UPDATE: see Drudge headline: European Banks Sitting on 24 Trillion Toxic Assets
