$550 Billion Disappeared in 'Electronic Run On the Banks'... Skip to about 2:15 in the video...
GLENN: So there's a video that's going around the Internet of a congressman out of Pennsylvania who, he was the guy who said, you know, I want to set up a reasonable profits board. A reasonable profits board? Don't laugh. FDR was doing it. So he wants to set up a reasonable profits board.
Now, he comes out and he's doing this interview on C-Span, and he just starts talking about the day the economy almost died. This is something that if you're a listener of this program and you pay attention to what we were saying and you see some of the stuff we talked about, we talked about this on one day but I couldn't get any more information. I had a little bit of information from my deep throat but that was it. And there was a meltdown and it was the day of the, I believe it was the mutual funds, right? And he's going to explain it here. The what? The money markets. And they were -- there was a meltdown and it is what started this ball rolling. I said at the time, my question was who started this ball rolling, but this is so much bigger. I want you to listen to this story and this congressman as he talks about the day the global economy almost melted down. This is from C-Span.
VOICE: It was about September 15th. Here's the facts, and we don't even talk about these things. On Thursday at about 11:00 in the morning, the Federal Reserve noticed a tremendous drawdown 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. They 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's what actually happened. If they had not done that, their estimation was that by 2:00 that afternoon, $5 1/2 trillion would have been drown off 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 --
GLENN: Okay. Stop for a second. Stop for a second. Do you understand what he just said? That somebody, within an hour, there was some electronic run on the bank where something was happening. I can't believe we still don't know who -- and if this was coordinated. But $550 billion in an hour left our shores. $550 billion. That's -- do you remember when $550 billion used to be a lot of money? And he said if they would have allowed it to continue, 5, what was it, $5 1/2 trillion. By the end of the day, $5 1/2 trillion of wealth, gone from our shores. But they shut it down. We would have collapsed. It started at 11:00 in the morning. We would have collapsed by that afternoon. And the rest of the world would have collapsed within 24 hours. Do you see how fragile we are? Good. Okay. Now let's follow the conversation because there's much more than just, "Well, who did that." We can come back to who did that. Listen to what else he's saying.
VOICE: Now, we talked at that time about what would happen if that happened. It would have been the end of our economic system and our political system as we know it and that's why when they made the point we've got to act and do things quickly, we did.
GLENN: Okay. So we've got to act and we have to act quickly, and we did. When "They" came to us and told us this, they said you have to act quickly, and we did. Just keep that in your brain.
Do you have the next cut?
VOICE: Will you listen to a lady that just got off the telephone. She is near panic, and she doesn't think her government's acting properly or acting in her behalf. I think it's important that we start informing that lady as to what really were the facts, what happened, and get input from her. Maybe she has a better idea. You know, we're not any geniuses in economics or finance. We're representatives of the people. We ought to take our time but let the people know this is a very difficult struggle. Somebody who is --
GLENN: Okay, stop. Stop. Did I just hear that right? Somebody in congress who I disagree with I think actually just said something very profound. We should allow the American people to know the truth on what it is because maybe somebody out here has a better idea because we're not geniuses. Wow. Somebody who apparently at least on this front is not so arrogant, somebody at least on this front is willing to listen to somebody other than all of the so-called experts who have been designing this thing from the beginning and who denied there was ever a problem, from the beginning, somebody who actually has the balls to say, "We should tell the American people the truth so they know." Okay, last cut.
VOICE: Somebody threw us in the middle of the Atlantic ocean without a life raft and we're trying to determine what's the closest shore and whether there's any chance in the world to swim that far. We don't know.
GLENN: Stop. Do you remember when I told you that I had talked to somebody who had spent a day. It was right around this time, spent the day with President Bush, world leader. He said, "We'll be there for you if we survive." If we survive. This is how bad the situation -- we're playing games. We've got Barney Frank asking the bank executives, where's the money; I want answers. We have Barney Frank. We're playing political games. We're talking about socialism instead of a stimulus package. We're putting in framework for universal healthcare. When somebody has dropped us in the middle of the Atlantic and we're trying to figure out which way is the closest shore and if we can swim that far, they're playing games.
I don't know -- let's go back to the beginning. I don't know who caused the run on the banks on the money markets. Don't know. Think that's probably pretty important to figure out. Is it China, is it Russia, is it just coincidence that all of this happened in just one hour, completely uncoordinated? You want to go down the rabbit hole into conspiracy theories, who benefits from this? The central banks do. Because they have more power.