About half way through this video we are told of a massive run on the banks. By Whom?!?!? Who did it?
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I saw something about this on Adam’s DSC drop and I asked the same question “Who?”
I just wonder if this is going to need the BS meter?
I think he is talking about people pulling out their money from money market accounts.
I was going to do that myself, but I became convinced that my bank had the money in safe assets.
Probably domestic & foreign investors. I think he mentioned money market accts. That’s where you park $ in between investments. The dollar is losing its value & cred very rapidly. Not surprised people are pulling out.
He talking about when commercial paper broke a buck last fall. No BS meter is needed it really happened.
It is partially a mathematical result, and partly caused by all the banks switching to cash investments, because it looks like there is deflation in the economy.
#4 GregA
I’ll take you word for it. I don’t really know anything about money markets and such, I’ve never really had any enough money to need one…
A money market bank account is nothing more than an interest bearing account — usually used for savings accounts.
Wow. $550 billion? And it just disappeared? So all that talk of “toxic paper” by the Bush Administration was wrong? The banks were healthy since that money was all electronic and had to end up somewhere.
Hhmmm, maybe the Bush Administration lied in an attempt to help the Republicans? Maybe it all backfired on them and became a self fulfilling prophecy.
# 7 Mr. Fusion said, “So all that talk of “toxic paper” by the Bush Administration was wrong? The banks were healthy since that money was all electronic and had to end up somewhere.”
It was a scam. The 1st $350 billion was a scam, the $350 billion about to go to the banks this week is a scam.
You are finally understanding that you have been scammed by Bush & now Obama.
Good boy.
#5,
No offense dude, but how did you miss it, yet retain an interest in cspan clips???
It was the only thing the news carried for like 3 weeks and was a financial version of 911, Katrina and the tsunami all rolled into one. Only it was bigger, and will ultimately be more costly than all of those disasters combined(in treasure as opposed to lives).
I mean, WTF???
8,
I didn’t realize Bush and Obama were partners.
Put your money into gold and silver coins and cross your fingers its gonna be a wild ride.
# 10 smartalix said, “I didn’t realize Bush and Obama were partners.”
How could you not realize when Obama helped convince American’s that Bush’s bank bailout was essential and then helped push it through congress?
What happened to the right side navigation panel? For about a week its been on/off/variable?
Perhaps by design, but I’ll be checking DU less because I can’t navigate it.
Good luck. Please get this fixed asap.
[We’re having problems with something locking up the site. It may be one of the widgets that are now missing from the side of the screen. Once we find the culprit, things will get back to normal. – ed.]
The Capital Markets Subcommittee Chairman, Rep. Paul Kanjorski of Pennsylvania: ” (from 1:50 in) …Look I was there when the (Treasury) Secretary and the Chairman of the Federal Reserve came those days to tell members of Congress about what was going on, it was about September 15th. Here’re the facts – and WE DON’T EVEN TALK ABOUT THESE THINGS – On Thursday at about 11 o’clock 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 dollars in a matter of an hour or two. The Treasury opened its window to help. They pumped a hundred and five billion dollars into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there. And that’s what actually happened. If they had not done that, their estimation was that by two o’clock that afternoon, five-and-a-half trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed. Now we talked at that time about what would have happened. It would have been the end of our economic system and our political system as we know it…”
Google the draw-down and u will find NO public record of it b4 last friday http://infowars.com/rep-kanjorski-550-billion-disappeared-in-electronic-run-on-the-banks/
[Please drop the WWW from URLs as WordPress doesn’t display it properly… plus it’s unnecessary. – ed.]
#8, Cow-Patty,
So you really want us to nationalize the banks to get our money back? I agree, if the banks lied to Federal Agents in order to get the money, they must be held accountable, but damn why do you want to nationalize them?
# 15 Mr. Fusion said, “So you really want us to nationalize the banks to get our money back? I agree,”
The Fed Reserve needs to become nationalized under the control of the congress. Then they can correctly regulate money supply based on the GNP and make sure it isn’t shoveling $ to private banks. And, set sane asset ratio limits on banks lending.
It’s a sloppy and barely legit system, folks – it’s called “mark to market” accounting and that’s all that’s described.
The quantity of assets didn’t change. No money changed hands. The market value of assets were revalued.
Cripes. I wish a few of you would study economics.
#14 cspanjunkie wrote, “Google the draw-down and u will find NO public record of it b4 last friday.”
The Kanjorski clip may be new, but the events he recounts are not. I first heard about this on PBS when Charlie Rose interviewed both Hank Paulson and Nancy Pelosi around the time when Congress was debating the revised TARP package, after the hastily-drafted initial proposal had already failed (tanking the DJIA by over 700 points).
One of the even lesser-known facts that came out during that interview was that Pelosi had received independent information of this money market draw-down and called Paulson to schedule a meeting for the following morning. Paulson’s reply was, “Madame Speaker, this can’t wait until tomorrow morning.”
listen to what was said: $550B was withdrawn from market accounts in ~90 minutes – not changed hands yes but withheld, that’s known as a “run”. Not revalued but DE-valued, that’s known as a “collapse.”
This event was the hammer which was wielded on the Hill by Bernanke and Paulson last fall to justify and push through TARP. Other reporting of the period alludes to it but none explicitly describe it. Why not?
http://www.nytimes.com/2008/09/21/business/21paulson.html
The banks don’t need to be nationalized. Rather, the Federal Reserve is what needs to be nationalized – JUST AS THE U.S. CONSTITUTION MANDATES!
For those of you that don’t know, the Federal Reserve is neither Federal or a Reserve. It is a privately owned bank that has a charter by the Federal Government to “loan into existance” our entire money supply.
Article I, Section 8 of the U.S. Constitution says only Congress has the power to “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.
Currently, the Federal Reserve coins all our money and regulates its value by its total and complete monopoly on setting interest rates. That is unconstitutional. Plain and simple.
After the demise in 1836 of the Second Bank of the United States (predecessor to the Federal Reserve Bank), the United States did not have a “Central” bank for over eighty years and functioned quite normally.
However, in 1913, Congress gave away the power to coin money with the Federal Reserve Act. Woodrow Wilson signed that act into law and, by 1929, the economy was in shambles and Herbert Hoover was the fall guy. The collapse was due in great part to the Feds’ continuous contraction of the money supply to dangerous levels which resulted in the catastrophic Black Tuesday.
I find it interesting that no one is questioning the Federal Reserve on where the TARP money is going or what individuals were part of this electronic run on the money market accounts.
If the Federal Reserve was a government agency, their records would be public record. They aren’t. If the Fed was a government agency, all of their employees would be government employees and could be held accountable to Congress. They aren’t. You want transparency in the Fed? You won’t get it because they are a private company and are not subject to Congress like a government agency.
Want proof? Go to your phone book, if you still have one. Look in the Government section (the blue labeled pages) and try to find the Federal Reserve. Where is it? It ain’t there. Now, check the business section. Low and behold! There it is, in black and white. The Fed is a private bank, not a government agency.
I think I see a light at the end of the tunnel. I think it’s a freight train headed our way.
Keith Olberman is playing this clip, right now, on his show.
Which, of course, means that he reads Dvorak Uncensored.
Or Prison Planet. . . .
#20, Mark,
You make it sound like America had smooth sailing between 1836 and 1913. Maybe you forgot the market crashes of 1838, 1855, 1878, 1894, 1903, and 1909. Those dates are off the top of my head so I might be off by a year or two. The 1878 was considered comparable to the great depression in terms of damage. The 1894 was also an extremely bad time and was a major impetus for Roosevelt’s Trust Busting efforts.
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The Fed Chairman is appointed by the President and confirmed by the Senate. Five of the Governors are appointed by the President and confirmed by the Senate. The Chairman of the Fed must make periodic statements and appear before the Congress.
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The collapse was due in great part to the Feds’ continuous contraction of the money supply to dangerous levels which resulted in the catastrophic Black Tuesday.
Is that what they teach you now in Libertarian School? The great stockmarket crash was caused by two inter related facts.
When the market crashed in 1928 it was because so many people were over extended. They would buy on margin for as little as 5% down. As long as the price didn’t drop then they were in good shape. When the market corrected itself, stock values dropped. Many of the people on margin had to sell at a loss to pay off the now devalued stock. The flood of stock further depressed sock held by others. The Fed and major banks got a handle on the situation and it settled down.
Then in 1929, The Fed wanted to rein in the marginal speculators and have more substantial down payments on stock purchases so they raised interest rates which tightened the money supply. This in turn precipitated a whole new round of selling. Soon, many companies were bankrupt as their stock was worthless and they couldn’t get loans. As the companies closed, the jobless ended up depressing the economy even further.
It was not the Fed’s interest rate, it was the overextended speculators. Today we would call that “toxic paper”.
The major differences between then and now is the banks caused our current collapse, with help from the government while in 1929 the banks actually worked to stave off the effects. In recognition of the unemployed, during his term Herbert Hoover never accepted any pay and gave away much of his personal wealth to help feed the hungry.
You want a comprehensive history of the Federal Reserve? Got a spare 3 & 1/2 hours? If yes, watch this vid:
http://tinyurl.com/37txmd
It may seem hokey, boring, and long, but this is the best documentary I have ever seen on the Federal Reserve Bank and how the United States gave away the Constitutionally mandated power to coin money to a private bank.
It was filmed over ten years ago and speak of a catastrophic collapse of our monetary system. It is rather creepy now that it is finally happening.
#24, Mark,
Anyone who would watch a video as something to prove a point is not any smarter than our own dull Cow-Patty. Anyone who would recommend a video as an authoritative exercise, is about as smart as Lyin’ Mike. Either way, it is stupid.
Mr. Fusion, obviously, you did not watch it. Would you say the same thing if I recommended a history book or government report or PBS documentary? Look how your statement changes:
“Anyone who would recommend a HISTORY BOOK as an authoritative exercise, is about as smart as Lyin’ Mike. Either way, it is stupid.”
You, sir, are of one opinion and anyone who disagrees with you or, as in my case, asks you to listen to an opposing view must be deemed stupid.
You are simply close minded ideologue. My experiences with you have shown that there is obviously nothing I can say or do to convince you of anything on any topic for which you have already made up your mind. Hence, it is pointless for me to argue with you. I have read your rants here for years and that fact has been proven over and over.
However, I dare you to actually watch this documentary with an open mind. You might actually learn something. But, I know you won’t.
Out of touch called, they want their incompetence back.
It would appear that Bin Laden made good on his threat.
They just took out the money to buy guns before the impending ban.
#26, Mark,
“Anyone who would recommend a HISTORY BOOK as an authoritative exercise, is about as smart as Lyin’ Mike. Either way, it is stupid.”
Well, if that is the way you feel. BUT, I would disagree. An acceptable History Book, most likely would be written by someone who knows what they are talking about, be relatively neutral, and be sourced.
Lyin’ Mike has demonstrated over the years a tendency to not read much of anything, preferring to get his information from right wing nut radio and TV. His pertinacity for just making up claims is well known. Hence, his nickname.
Videos are inevitable propaganda pieces. As soon as someone says “ya gotta watch this to learn all about it”, then I know it is a waste of time. I have little patience for propaganda from either extreme.