Author Topic: "Within 24 hours the world economy would have collapsed"  (Read 2213 times)

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Drew

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"Within 24 hours the world economy would have collapsed"
« on: November 03, 2010, 12:20:54 PM »
Congressman Paul Kanjorski states that - Electronic Money Market Run Nearly Destroyed US and World Economy

In a January 2009 CSPAN interview Rep. Paul Kanjorski states the following:

Quote
"I was there when the Secretary [of Treasury - Paulson], and the Chairman of the Federal Reserve [Bernanke], came those days and talked with members of congress about what was going on.  It was about September 15 [2008] [actually September 18, 2008].  Here are the facts.  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 was being drawn out in a matter of an hour or two.  The Treasury opened up its window to help.  It pumped $105 billion in 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 is actually what 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 what would happen if that happened.  And that is why when they made the point, we have to act and do things quickly - we did."

Comment transcribed above comes two minutes into a six minute video of a CSPAN interview - see it here ==> http://www.youtube.com/watch?v=pD8viQ_DhS4

For all who claim that Kanjorski is yapping with a few screws loose upstairs, take a look at this clip: http://financialserv.edgeboss.net/wmedia/financialserv/hearing092408.wvx
and fast forward to the 1 hour, 50 minute and 48 second mark. This is archived footage from the September 24, 2008 House Financial Services hearing at which both Paulson and Bernanke are present. Kanjorski asks Paulson this very question, and states to Paulson, that the information came originally from him. Now, Kanjorski may be anything but not senile as he is merely repeating facts that Paulson tells him. And Paulson does not refute the facts. His explanation is somewhat amusing. Make your own conclusions.