Congress Spooked in September By Massive Financial System Run Underway?

[bananas]

Run time: 06:09 https://www.youtube.com/watch?v=INAGMSARPYw   Posted on YouTube: January 31, 2009 By YouTube Member: Views on YouTube: 0   Posted on DU: February 09, 2009 By DU Member: bananas Views on DU: 414

 
From Paul Kedrosky's blog: http://paul.kedrosky.com/archives/2009/02/08/congress_spooke.html
The part quoted below starts around 2 minutes into the video.

February 8, 2009
Congress Spooked in September By Massive Financial System Run Underway?

Everyone remembers that Henry Paulson and Ben Bernanke went into a closed session in Congress in mid-September of 2008 and scared the crap out of the assembled politicians. According to a (very rough) transcript of a semi-coherent Rep. Paul Kanjorski (D-PA) on C-Span, here is what Paulson and Bernanke said:

It was about September 15th . … On Thursday at about 11 o’clock in the morning the Federal Reserve noticed a tremendous drawdown of, uh, money market accounts in the United States to the tune of $550-billion was being drawn out in in a matter of an hour or two.

The Treasury opened up its window to help, and pumped in $105-billion into the system, and quickly realized it could not stem the tide. We were having an electronic run on the banks. They decided to close down the operation, to close down the money accounts. … If they had not done that, in their estimation, by 2 PM that afternoon $5.5-trillion would have been withdrawn and would have collapsed the U.S. economy and within 24 hours the world economy would have collapsed.

We talked at that time about what would have happened. It would have been the end of our economic and our political system as we know it.

More http://www.liveleak.com/view?i=ca2_1234032281">here. As I said at the outset, this only seems semi-coherent to me, but undoubtedly this is a semblance of what was described.

[ixion]

1. remember Hank Paulsen down on one knee, begging Nancy for money

it was a ruse, you see.

[eShirl]

2. so that's what had them crapping bricks

[Zynx]

4. When creditworthy municipalities and states had trouble issuing debt, that

was a sign the whole system was flying apart at the seams. The run on the money market system was real. That was a scary thing to watch.

[kickysnana]

3. K & R

[Sanity Claws]

5. Was that a coordinated run on the banks?

Makes you wonder what the hell was going on. Was Cheney and his group trying to cause the collapse so that martial law could be imposed? They want chaos, after all. By this time, Bush had stopped listening to Cheney; did Bush take steps to thwart Cheney's plans?
As you can see, my tin foil hat is still getting a lot of use.

[bananas]

6. HamdenRice's explanation

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=56391&mesg_id=56406