Current Economic Issues - Maybe we should let the people know what's going on

[kent nickell]

"Maybe we should let the people know what's going on" by US House of Representatives member Paul Kanjorski of Pennsylvania (interesting concept)

http://www.youtube.com/watch?v=_NMu1mFao3w


This video is interesting in that it gives some insight into the emergency meeting that Bernanke and Paulson had with key members or congress on 9/15/08. Lehman Brothers had collapsed the day before... Apparently the feds noted that about 550 billion had been withdrawn from money market funds by 11am and they feared this electronic run on the banks may have gone to 5.5 trillion by the end of the day effectively wiping out ours and the global financial system. The president went on tv extending federal guarantees to money markey funds and the first TARP bailout was born....

 

[sharon sanders]

Re: Maybe we should let the people know what's going on

Re: Maybe we should let the people know what's going on

Thanks Kent.

No banking system in the world can survive a run for cash. Even in the best of times.

What is interesting about this is that it shows that real wealth lies in the unit of production. That is to say - the real value in an economy is output.

A day's labor using resources efficiently to make something of value.

If cash loses its value then real wealth is tangible assets. The very things that are priced low now. This is probably the time to buy. When everyone says not to.

 

[kent nickell]

Re: Maybe we should let the people know what's going on

Re: Maybe we should let the people know what's going on

Thanks F1.. caveat emptor. During the Depression people kept buying into the lows until all their assets were sucked into the vacuum. We will surely see a recovery but some more eggs will probably be broken first.

 

[gsgs]

Re: Current Economic Issues - Maybe we should let the people know what's going on

Here is a transcript of what Kanjorski says in the video:
On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two.
Money was being removed electronically.
The treasury tried to help with $150 Billion.
But could not stem the tide.
It was an electronic run on the banks
The treasury intervened but had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawled and collapsed and within 24 hours the world economy.
Kanjorski does not provide further details.
A Google search to verify this produces zero results.
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85 Responses to ?Rep. Kanjorski: $550 Billion Disappeared in ?Electronic Run On the Banks??


http://www.infowars.com/rep-kanjorski-550-billion-disappeared-in-electronic-run-on-the-banks/

 

[sharon sanders]

Re: Maybe we should let the people know what's going on

Re: Maybe we should let the people know what's going on

Thanks F1.. caveat emptor. During the Depression people kept buying into the lows until all their assets were sucked into the vacuum. We will surely see a recovery but some more eggs will probably be broken first.

Yes - caveat emptor!

Any recovery will not be a straight line. It will be a rocky climb up. Those who do not have iron stomachs should probably play it safe and stay on the sidelines.

The real concern is employment. No jobs = no consumer spending = little or no economic growth:

Since World War II the end of a recession has led to a decrease in the unemployment rate as the economy re-enters the expansionary phase. The National Bureau of Economic Research (NBER) declared the end of the most recent recession to be November 2001. Through June 2003 (nineteen months after the end of the recession) we have not seen the job creation normally expected in an economic recovery. The unemployment rate has actually increased from 5.6% to 6.4%. After the 1990-1991 recession, the unemployment rate continued to climb for fourteen months, thus the moniker “Jobless Recovery.” As the chart shows, the economy appears to be following the same employment pattern as the 1991 recovery.


http://www.icmarc.org/xp/rc/marketview/chart/2003/20030725joblessrecovery.html

 

[gsgs]

Re: Current Economic Issues - Maybe we should let the people know what's going on

this is not a normal recession.
Banks were leading the "movement", not just suffering
from it.
financial crisis
trust crisis
CDSs going up, government guarantees, banks nationalized

...and the economy follows the "trend"

 

[sharon sanders]

Re: Current Economic Issues - Maybe we should let the people know what's going on

A collection of debt trends from the Federal Reserve & BEA.



http://numbrary.com/topics/debt