daveg says:

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.

GregA says:

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.

Paul says:

A money market bank account is nothing more than an interest bearing account — usually used for savings accounts.

Paddy-O says:

# 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.

smartalix says:

8,

I didn’t realize Bush and Obama were partners.

Paddy-O says:

# 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?

cspanjunkie says:

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.]

Paddy-O says:

# 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.

Gary, the dangerous infidel says:

#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.”

Mark T. says:

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.