$550B run on money markets, 9/11 or 9/18, 2008?

By Arlen Williams

There is some blow-back among journalists and bloggers, to I.O's 2/14 updated article, immediately prior to this one — enough that I have added a couple question marks in key places. This dispute/correction by means of conventional wisdom declares the $550B withdrawal from money market funds mentioned by Rep. Kanjorski as having taken place in less than two hours, were two hours out of Thursday, 9/18/08 and not 9/11/08.

I.O. once again offers the unedited Kanjorski pronouncements on C-SPAN, wherein he states

Look, I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th. Here's the facts, and we don't even talk about these things. On Thursday at about eleven 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 was being drawn out in the matter of an hour or two. The Treasury opened up its window to help. They pumped a hundred and five billion dollars 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's what actually happened.

From this, one would logically assume that the Thursday in question was likely on 9/11. However, there were news reports at the end of the following week which indicated a 9/18 date, for a huge draw-down. However, such reports also indicate statements [emphasis by I.O.] such as:

The news on redemptions at Reserve Primary is certainly being kept low key. The only reference to it that I have seen was buried in the third paragraph of a Bloomberg story.

[from EconomicPolicyJournal.com, "Run On Money Market Fund: Reserve Primary Fund Lost 60% Of Its Assets To Redemptions This Week"]

And from a New York Post article, "Almost Armageddon," dated Sunday, 9/21:

According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning.

From the above, it is clear that details of this enormous threat to the United States' economy were being kept quiet. From the above, one is compelled to ask, how quiet? For example, it being kept as quiet as it was, had traders been trained by the federal government to hush news of any market panic potentially caused by economic terrorism? And if so, how long might they have been able to keep such a thing quiet? After all, it would be convenient to keep very, very quiet, an enormous economic attack on the date, 9/11.

Members of Congress have the answers. I.O. commends Rep. Kanjorski's interest in Congress informing Sovereign Citizens of what occurred and looks forward to gaining more information from them — more glasnost, less mushroom management. For starters, what exactly do you mean to say, Rep. Kanjorski?

It should also not be lost in this discussion that it has been said, the most significant catalyst for the mortgage meltdown was the failure of IndyMac and that the catalyst for this was the prior public doomsaying of the same by Senator Charles Schumer. Nor should it be forgotten that Senate Majority Leader Harry Reid later leveled a similar, severely damaging public badmouthing of the insurance industry.

Add to this the move of ideological the friends of known economic terrorist, and fellow bankroller of MarxoFascists, George Soros, who are Herb and Marion Sandler. These culprits sold their virtual loansharking mortgage business, Golden West, to Wachovia Bank. Presumably they, being good at business, had a reasonable idea of when their loans were going to sour.

Add to this, the recurring patterns of huge end of day and end of week sell-offs on Wall Street, during this time, quashing hopes for stock market stability.

Then there was the prevention of the investigation of Fannie and Freddie, the campaign funding kickbacks of the same to the Democrat Congressmen who "helped" them, the revised Community Reinvestment Act which provided political correctness to rampant bad mortgages, the coercive tactics of Soros-backed ACORN, demanding that banks give out many more bad loans, and one wonders just what strings and wool can be pulled.

And keep in mind, this is the same Congress which ramrodded two crisis deepening, trillion dollar "acts" of economic sabotage upon us, since September.

Convenient coincidences abound. So do cunning and stealth by the powerful — along with profound media ignorance. Yes we do look forward to gaining more tidbits of need-to-know information from Congress. (The Good Lord knows we don't expect the same from the new Executive Branch, since critical information to which voting American Citizens are entitled, fails to come, from the man who attacks those who seek it, Barack Obama — or is that Barry Soetoro, the new, Indonesian "president" of the United States?)

Yes, let us have some further dialogue with Congress. As Rep. Kanjorski relates, they may need it.

© Arlen Williams