Thursday, February 12, 2009

$550 Billion Run on Banks?

According to Rep. Kanjorski (D-PA) during this interview on C-Span, there was a run on US Money Market Funds starting at around 11:00 a.m. on September 18th, 2008, in which during a two hour period $550 Billion dollars simply disappeared. Reports have surfaced of individuals who lost $100,000 from their money market accounts. Bloggers are abuzz over this story, and conspiracy theories abound. Immediately after this event, President Bush held a news conference with Hank Paulson at his side, in which he stated that our country was in the midst of a financial emergency. Money market accounts were frozen, and the FDIC upped the insurance from $100,000 to $250,000 per account. And then TARP was born.

Copy and paste this into your browser, and pay attention to Rep. Kanjorski's words at about the 2:20 minute point.

What does it mean? Is this guy another gaffe prone Biden clone, who just spouts off nonsense to hear himself talk? Or did something really happen to the markets that day that nobody is talking about? Were US financial institutions hacked into, or was there a concerted effort by certain individuals and governments, such as George Soros or Saudi Arabia to deliberately tank our economy and create the October Surprise (even though it was September) that often throws a wrench into the outcome Presidential elections? Certainly Obama benefited from the economic collapse with a Republican in charge, and the narrative of the race went from one of excitement about the new face from Alaska, terror, Iraq, and an economy with a minor cold, to ECONOMY! ECONOMY! ECONOMY!

I am not an economist or a financial wizard, and I'm certainly not privy to the goings on of the powers-that-be behind closed doors. So I don't know what to make of this. Perhaps it will debunked as conspiracy theory hoo-hah, and the babbling of a crazy old Pennsylvania Congressman. But in this strange new Land of Obama, I am becoming more skeptical of government with each passing day, and there is very little that would surprise me anymore.


Anonymous said...


I agree. AND Timothy Geithner scares me.

From Turbo Tax to Treasury Secretary

Treasury Secretary Timothy Geithner revealed his financial rescue plan today, and it caused the stock market to plunge almost 400 points. Why did the market sell off if we are going to spend trillions of dollars to stop a depression? Because Geithner released a “Financial Stability Plan.” What does that mean? Who knows! That’s why the market tanked. After weeks of planning, Geithner revealed a plan with no plan. All it offered was confirmation the government will spend trillions of dollars. No specific details were explained and many questions are left unanswered. Maybe we shouldn’t trust a bailout package from a Treasury Secretary who, using Turbo Tax, couldn’t file taxes correctly .

Just for fun, here’s a tidbit from when Geithner was grilled by members of the Senate Finance Committee:

Grassley: “Did you use tax software to prepare your taxes?”

Geithner: “Yes, I did.”

Grassley: “Which brand of tax software?”

Geithner: “I will

undertaker said...

It was mid September 2008 that the Treasury Department started their little program of "quantitative easing" (printing money). Check the price of petroleum (and gas) in 2008 and it certainly looks like a little "hanky panky" to me.