After all, this catastrophic event did not have quite the physicality of say an actual bank run.
But, make no mistake, this electronic run on the banks of Sept. 18, 2008, was every bit as catastrophic, with numerous victims.
|George Bailey, played by Jimmy Stewart, |
in It's A Wonderful Life (1946), confronting the run on
the Building and Loan, RKO Pictures
Sure, it could be pure coincidence that exactly at 11 a.m. a wave of concerned investors all decided it was time to electronically withdraw their funds thus creating this crescendo drawdown effect setting in motion a worldwide panic.It could be coincidence. But, it’s doubtful.
The fact that the identities of those who simultaneously decided to withdraw their money at 11 a.m. on Sep. 18, precipitating this panic, were never released, does lead one to question whether or not something sinister was at work.
Is there no one else with even the vaguest curiosity to ask if it was a coincidence or not? And, to suggest maybe an investigation is in order to deliver that vaunted “transparency” that voters seemed to believe they would get after the 2008 elections.
If nothing sinister was at work, then why so much secrecy concerning the destination of this $550 billion in money withdrawn on Thursday, Sept. 18, and those responsible for redirecting these funds out of the U.S. money markets.
Surely the money didn’t go back into the American economy.
No, $550 billion was drained away from the American economy, the consequences of which we suffer to this day.
The exact contours of this event were described by Rep. Paul Kanjorski (D-Pa.) on C-SPAN on Wednesday, Feb. 11, the day before the 200th anniversary of Abe Lincoln’s birth.
An enraged caller had just erupted over the ill-advised $700 billion bailout a few months earlier and Rep. Kanjorski felt pressed to reveal what Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke had told Congress behind closed doors, which so shocked them into supporting this mind-bogglingly huge bailout.
“On Thursday [Sept. 18, 2008] at about 11 o’clock in the morning,” Kanjorski began, “the Federal Reserve noticed the tremendous drawdown of money market accounts in the United States to the tune of $550 billion dollars 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.”
At that point, officials realized, Kanjorski relates, “We were having an electronic run on the banks.”
|Depositors lining up outside the Building and |
Loan in It's A Wonderful Life (1946), RKO Pictures
This writer, for one, would like to know.