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How worldwide economic collapse was averted

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posted on Feb, 12 2009 @ 12:45 AM
External Source:

Jesse's Café Américain
"Poverty wants much, but greed wants everything." Publilius Syrus, 1st century BC

18 September 2008
A Run on Money Market Deposits Takes Down Two More Funds

BNY Mellon Institutional Cash Fund Hit by Lehman Debt Losses
By Christopher Condon

Sept. 18 (Bloomberg) -- An institutional fund run by Bank of New York Mellon Corp. designed to work like a money-market account fell to less than $1 a share after losses on debt issued by bankrupt Lehman Brothers Holdings Inc.

The $22 billion BNY Institutional Cash Reserves fell to $0.991 a share on Sept. 16, according to an e-mail sent by a bank representative to one client. BNY Mellon has ``isolated the Lehman assets in the fund into a separate structure,'' Ivan Royle, a spokesman for the New York-based company, said today in an e-mailed statement.

The fund invests cash deposited as collateral by clients who borrow securities from BNY Mellon, the world's largest custody bank. Lehman debt represented 1.13 percent of the fund's holdings, according to the statement. Royle declined in an interview to say whether investors withdrawing money from the fund would realize losses. The BNY Mellon fund, while not a registered money-market fund, is ``generally managed to be compliant with the investment-related provisions of'' U.S. law governing the accounts, according to a bank brochure.

Reserve Primary Fund, the oldest U.S. money-market fund, on Sept. 16 became the first in 14 years to fall below the $1 a share price, known as ``breaking the buck.'' Investors pulled 60 percent of their money from the $62.6 billion fund on Sept. 15 and 16 before withdrawals were delayed. "

[edit on 12-2-2009 by burntheships]

posted on Feb, 12 2009 @ 01:04 AM
Well well look it here...are we getting the picture here?
Can you say engineered?

'Buck-breaking' money market mutual fund returns initial $26B
Updated 10/31/2008

NEW YORK (AP) — A money-market mutual fund that "broke the buck" amid a rush of orders to pull out cash has begun returning an initial $26 billion to investors who had been unable to access their money for more than a month.
The first in an unspecified number of distributions from the Reserve Primary Fund began Thursday with checks being mailed to retail-direct shareholders, Reserve Management Co. said. Payments to all other shareholders will be made by wire on Friday.

Each investor is getting about half their current account balance, the company said. It said all investors are being treated the same, whether or not they tendered redemption orders, and that the payout is being done on a pro-rata basis.

"This distribution marks a significant step in the process of liquidating the Primary Fund and distributing money back to shareholders," Reserve Management Co. President Bruce R. Bent said in a statement. "We are committed to making future distributions when more cash becomes available."

The fund had total assets of about $51 billion as of Sept. 30. It held $64 billion in assets on Sept. 12, before a soured investment in Lehman Brothers debt triggered a rush of institutional investors pulling out cash."


posted on Feb, 12 2009 @ 04:25 AM
THere was the one republican senator, don't remember his name, that said martial law was threatened, and that jives with this - this guy says complete meltdown of our economic and political system. If that had happened, yes, the consequence would have been martial law.

I did remember, Brad SHerman. He wasn't there, but what he is saying, seems to lend credibility to this, I think.

[edit on 12-2-2009 by hadriana]

posted on Feb, 12 2009 @ 04:56 AM
If it was Chinese hackers, look to the honker union. They declared a cyberwar with the US at one point, not that long ago, and they are pretty talented. They run as unaffiliated with the chinese govt, but the Chinese govt has never bothered them as long as their targets have been what the Chinese govt was ok with them being.

They all keep saying it is a trust issue. Maybe it is, just not the sort of trust we'd normally think. Yeah, anything bad going on, definitely look to Dubai, way too much money there, way too much. And way too many people like CHeney buying homes there.

But when I first was reading the stuff you guys posted about the hacking, I thought, hmmm is hacking an unofficial Olympic sport? Just how much were the Olympics anyway? lol

[edit on 12-2-2009 by hadriana]

posted on Feb, 12 2009 @ 11:19 AM
reply to post by hadriana

Thanks for the name of those hackers, I was wanting to read up on them.

posted on Feb, 12 2009 @ 10:47 PM
Has worldwide economic collapse been averted or only delayed, thereby making the inevitable crash much worse in the end? Hmm...

Is there anybody in there? Hmm....
Just nod if you can here me!

Is this thing even on? Hmm....

[edit on 13-2-2009 by dodadoom]

posted on Feb, 12 2009 @ 10:54 PM
reply to post by dodadoom

Delayed...sure...but, one way or another this Machine needs to be Re-Engineered. I don't think you can take $10 real $, Leverage it 30x to $300, and somewhere down the Line say, I think I'll walk away now, can I get that $300. Ummm I would, but, it's not real...I only got $10...Sorry...
...Pretty Simple Huh?

[edit on 2/12/2009 by Hx3_1963]

posted on Feb, 13 2009 @ 01:30 AM
reply to post by Hx3_1963

Sounds like how we got into this mess! Except its leveraged even more!
I guess thats depends on what the 10$ is made out of and what year it is!
(as far as what it's worth) LOL

Our money is only worth something because we say it is.
What happens when we can't say that anymore?...Hmm

[edit on 13-2-2009 by dodadoom]

posted on Feb, 13 2009 @ 05:23 AM

posted on Feb, 14 2009 @ 12:58 AM
What if None of This Really Matters...

The Bankruptcy of the United States

posted on Feb, 14 2009 @ 01:43 AM
Was going to tie it all in as playing the hand we're dealt, but better just call it a house of cards like I should at this point!

Good show ol' chap!

Do you think we can make it back with all we've been through
or is it just another speedbump on the way over the hill?

posted on Feb, 14 2009 @ 01:45 AM
Sounds interesting, I do believe it.

Steve Quail apperently talked to a high ranking millitary offical who told him that on Oct 7th, 2008, the US was minutes away from full marial law in America.

Also many congressmen were threated with martial law unless they passed the ballout bills. But I guess thats a bit unrelated to the thread, sorry everyone.

posted on Feb, 14 2009 @ 01:46 PM
reply to post by Hx3_1963

The United States of America? Bankrupt? My goodness! Is that where the Federal Reserve came from? And I wonder what happens when the "Trust" or "Estate" of the United States of America goes belly up?

Thanks for posting that...I have got to understand this better! I know it is kind of a waste of my time...but maybe a few states will pull out and before Martial Law is put into effect, I could get out of California!!!!!

posted on Feb, 14 2009 @ 01:52 PM
reply to post by ats__fan039

Well really it is not unrelated. The fact that this electronic run was basically hidden by MSM, and that videos shown from cspan have congressmen stating that they understood we were "under martial law"
kind of makes it central to getting to the bottom of the match llight.

That is kind of what happened back September, October. Some one light a match to the whole gasoline soaked pile of Bandini that we call our "Banking System"

The more I read up on it...the more I think it was engineered. Maybe for the election, maybe because of the election?

posted on Feb, 14 2009 @ 01:54 PM

Originally posted by ats__fan039
Sounds interesting, I do believe it.

Steve Quail apperently talked to a high ranking millitary offical who told him that on Oct 7th, 2008, the US was minutes away from full marial law in America.

By the way, and sorry for three posts in a row and my ignorance...who is Steve Quail? I am not familiar at all...clue me in?

[edit on 14-2-2009 by burntheships]

posted on Feb, 14 2009 @ 02:52 PM

Originally posted by Electro38
It interesting how a lot of people were saying this whole mess started with the housing market bubble, and some are still saying that. But now the pres. and others are starting to blame the banks solely.

Members of congress were saying it was our fault, aka. the little people for our bad credit habits and the housing bubble... I always thought that sounded strange. I think it was just a good excuse or diversion, since these things were happening concurrently.

We should all demand to know what really happened. It seems like it was a gigantic scam perpetrated on us.

Awesome examples for defining DENIAL thru Rational Blame

posted on Feb, 14 2009 @ 04:40 PM
Far more threatening, it seems, is the mess with the Credit Default Swaps (CDS). This is the ticking time bomb in the derivatives market, and explains why Paulson got so freaked when Bear Stearns and AIG were about to default.

A credit default swap is, essentially, an insurance contract between a protection buyer and a protection seller covering a corporation’s, or sovereign’s (the “referenced entity”), specific bond or loan. A protection buyer pays an upfront amount and yearly premiums to the protection seller to cover any loss on the face amount of the referenced bond or loan. Typically, the insurance is for five years. Credit default swaps are bilateral contracts, meaning they are private contracts between two parties. CDSs are subject only to the collateral and margin agreed to by contract. They are traded over-the-counter, usually by telephone. They are subject to re-sale to another party willing to enter into another contract. Most frighteningly, credit default swaps are subject to “counterparty risk.”

Credit Default Swaps

the Wed referred to here is Sept 17, 2008

At the exchange rate yesterday (Wednesday), 35 trillion British Pounds was equivalent to U.S. $62 trillion (hence, the 35 trillion Pound gorilla). According to the International Swaps and Derivatives Association, $62 trillion is the notional value of credit default swaps (CDS) out there, somewhere, in the market.

If the party providing the insurance protection - once it has collected its upfront payment and premiums - doesn’t have the money to pay the insured buyer in the case of a default event affecting the referenced bond or loan (think hedge funds), or if the “insurer” goes bankrupt (Bear Stearns was almost there, and American International Group Inc. (AIG) was almost there) the buyer is not covered - period. The premium payments are gone, as is the insurance against default.

This article is only part 1 of 3 parts, and so far I have not had the courage to read the next two parts. This makes the term house of cards seem way too substantial. I don't know how long this can be propped or what the consequences will be.

posted on Feb, 14 2009 @ 08:12 PM
Well I might have finally found the "Smoking Gun", linking this all together.

Welcome to The Real Matrix: Time for The Red Pill?

This would explain it all

posted on Feb, 14 2009 @ 11:00 PM

The U.K. banking system was within three hours of collapse on Oct. 10, days before the government announced a bailout for banks, City Minister Paul Myners told the Times newspaper in an interview.

Major depositors tried to withdraw from a number of large banks, and were willing to pay penalties for early withdrawal, the newspaper cited Myners as saying.

posted on Feb, 14 2009 @ 11:45 PM
Global systemic crisis / September 2008 - Phase of collapse of US real economy

Pretty good prediction, considering they made it back in Feb 2008...wonder who knew what?

[edit on 2/15/2009 by Hx3_1963]

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