How worldwide economic collapse was averted

I searched to see if this had been posted, and did not find anything.

This is a youtube video of The Capital Markets Subcommittee Chair, Rep. Paul Kanjorski of Pennsylvania, telling C-Span that the world economy almost collapsed in a matter of hours.

The youtube video description reads:

At 2 minutes, 20 seconds into this C-Span video clip, Rep. Paul Kanjorski of Pennsylvania explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occured over the period of an hour or two.

This is an excerpt of what he said:

"The Treasury opened its window to help. They pumped a hundred and five billion dollars into 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. And that's what actually happened.

If they had not done that their estimation was that by 2pm that afternoon, 5 1/2 trillion dollars would have been drawn out of the money market system of the United States, it would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed."

www.youtube.com...

edit: had trouble with the youtube video link and changed title per suggestion

He is referring to time around September 15th, 2008

[edit on 9-2-2009 by helpmefindtheway]

[edit on 9-2-2009 by helpmefindtheway]

[edit on 9-2-2009 by helpmefindtheway]

[edit on 10-2-2009 by helpmefindtheway]

I think we should demand to know who it was that was drawing this money out if this is true.

I have a hunch it was the Federal Reserve that did it since it's their coffers that was empty. We will probably never know.

Great Find!

This is the first i've heard of this information. Would like to know if there is more info out there on this. So is the truth finally starting to come out? We dodged the complete financial collapse of the world?

BTW...the woman at the beginning of the video...you could just feel the anger in her voice.

S & F

BTW here is the vid embedded:




[edit on 9-2-2009 by David9176]

Thank you for embedding! I can never seem to get that right.

It sure does shed some light on the closed door meeting back in September, and the apparent sick looks on the faces of those in attendants as they left.

I wondered what was told to them that could warrant such a reaction, could this have been it?

reply to post by helpmefindtheway


If this is all true, why did they keep it secret for so long? I can see why they did it in the short term as to prevent panic, but why now?

I'm surprised this video hasn't exploded across the internet yet.

This is a MUST watch people.

Once again OP, great find.

Offtopic: There is a thread on ATS that shows you how to embed videos if you need help. Not sure where it is but you can probably find it with a search.

[edit on 9-2-2009 by David9176]

This is the real reason for the bank bailouts. The government froze up the credit before we crashed, that is if i'm hearing this right.

Amazing stuff.

BTW...if you can still edit the title, you change it to something like "How wordwide economic collapse was averted"

People seem to be passing this one by.
[edit on 9-2-2009 by David9176]

[edit on 9-2-2009 by David9176]

I forwarded this Video & a Copy of Michigan Resolution No. 4 Declaring Sovereignty to CNBC & My Local TV Station...doubt we'll hear anything about these News items as MSM have probley got Gov Censor Teams in place these days...

Wonder if searching back to around Sept. 11th would provide any clues as he states Thursday Mid-Morning as the Date it actually happened...this would give Treas time to change their drawers & make up a story before spilling the beans on the 12th before Leahman Bro's bit the dust...and as above stated...that's why Credit Markets Froze...Treas had to lock everyone out before they were emptied...

[edit on 2/9/2009 by Hx3_1963]

I hadn’t heard about this either, so I did a little searching and found this. I pulled the three most relevant (to me) posts out. I don’t know enough about this to really comment, but I found it interesting.
www.elitetrader.com...

First of all, somebody needs to get the jargon down correctly. It was money-market mutual funds that were experiencing the drawdowns, not the money market accounts mom & pop get from their local bank and are FDIC insured. Secondly, since these funds were allegedly being withdrawn electronically where the hell did it go? It wasn't being stuffed under the mattress. It had to be re-deposited somewhere. So, for every bank that was experiencing a liquidity crunch, another bank was experiencing a waterfall of liquidity.
---------------------------------------

Sept 15th 2008 was on a Monday, not a Thursday. This was the Monday morning after Lehman collapsed so this makes sense actually. I'll never forget that Sunday evening when everything was hitting the fan at once.
-------------------------------------------

Half a trillion in only 2 hours? That's way too fast to be your neighbors and friends running away. It's also in the middle of the work day, how could it be so concentrated? This looks like a classic attempt at an engineered run on a bank, they've been done a few times before.
Next step is buying up assets on the cheap..

Looking at time zones, it looks like it's afternoon, it would be 4 pm in London, 5 in Germany. and it's early sleeping time in Asia.

So where was this money going? Was someone just flat out stealing it? How would one be able to do such a thing?

reply to post by Pauligirl


Thanks for the additional info.

So what I got from it was that on Thursday September 11th this happened around 11am, and he is speaking of the meetings that took place after the SHTF on the 15th of september, after sunday's Lehman news.

He did say money market accounts, and not money market mutual funds, did he mis-speak?

reply to post by helpmefindtheway


Actually from what I'm seeing it says on Monday the 15th? I'm not seeing where they are saying Sept 11.

[edit on 9-2-2009 by David9176]

[edit on 9-2-2009 by David9176]

[edit on 9-2-2009 by David9176]

He says they came to talk about the 15th, then he says "on thursday at about 11am" - the logical thinking is the thursday before, which was the 11th.

So thursday they save the economy, sunday Lehman announced, monday the effects of lehman are felt in the markets.

At least that is what i got from it.

Wow. Fascinating and scary. It puts it into perspective. So who was creating the run on the banks? Talk about dicing with global death. And the government really doesn't know what the hell to do about it.

Anyway, great thread. At last my lurking on ATS has paid off. Can anyone find any other info on this?

reply to post by rizla


Being as all the big 12 are in bed together I'm guessing one of the other 11 members knew L was going down and jumped in to get as much as they could and hang on to it for L...nice arrangement they got...maybe the Rothchilds...I'm seeing now that if Ford or GM go down Rothchilds got their nose in the Mix...

The U.S. government has the option of working out an intercreditor agreement outside of bankruptcy that would give it rights to some collateral ahead of others. Such agreements, often made when money is lent to a company that already has liens on most of its assets, are usually negotiated when the loan is made.

U.S. Law Firm

Cadwalader, Wickersham & Taft LLP is advising the government on how to make sure it gets paid back first, including by way of intercreditor agreements, the people involved with the talks said. The law firm, hired last month, is working for the government with Sonnenschein, Nath & Rosenthal, a Chicago-based firm with capital-markets experience, and Rothschild Inc., an investment bank, the people said.

www.bloomberg.com...

[edit on 2/9/2009 by Hx3_1963]

The meeting he is referring to, I believe, was also described in this article:

www.nytimes.com... 2&hp&oref=slogin

WASHINGTON — It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.

As Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Banking, Housing and Urban Affairs Committee, put it Friday morning on the ABC program “Good Morning America,” the congressional leaders were told “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.”

“When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York.

When Mr. Schumer described the meeting as “somber,” Mr. Dodd cut in. “Somber doesn’t begin to justify the words,” he said. “We have never heard language like this.” “What you heard last evening,” he added, “is one of those rare moments, certainly rare in my experience here, is Democrats and Republicans deciding we need to work together quickly.”

Although Mr. Schumer, Mr. Dodd and other participants declined to repeat precisely what they were told by Mr. Bernanke and Mr. Paulson, they said the two men described the financial system as effectively bound in a knot that was being pulled tighter and tighter by the day.

Just to refresh.

reply to post by rizla

Anyway, great thread. At last my lurking on ATS has paid off. Can anyone find any other info on this?

I've been searching google, haven't been able to find new info. I have found lots of websites that have just put up this video or are linking to it today.

SO this may be on the news tomorrow. We'll see.

This was aired on January 27th, why we haven't heard of it until now I find odd.

Full interview (the part we are concentrating on is at 22:50)

Rep. Paul Kanjorski (D-PA), Chairman of the Capitol Markets Subcmte.Tuesday, January 27, 2009

The House begins debate on its version of the economic stimulus proposal. Rep. Kanjorski (D-PA) goes over the legislation and gives the latest on the troubled assets relief program.
Washington, DC : 32 min.

www.cspan.org...

reply to post by helpmefindtheway


It is odd. This is the only person that I know of that has gone into length about what really happened. I remember at the time, as you showed in your post, we were never really given an explanation as for why it was done but only that we had to do it.

As you stated, very strange this went unnoticed.

This is HUGE! Who did it? where did the money go? I wonder if it was an attack of some sort? Why keep it quiet? WTF is going on?

I think the word "averted" in the title should be changed to "delayed".
I believe this was just round one of the outright theft of the people of the United States... Obama is working on round two.