LiveLeak has caught a scary moment of previously undisclosed insight by Paul Kanjorski, where he reveals some facts that have not been captured by the media previously. Watch the video on YouTube. At 2 minutes and 20 seconds in the video, Democratic Representative Kanjorski 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 occurred over the period of an hour or two. And it gets worse. Kanjorski paraphrases the following disclosure by Bernanke and Paulson:
On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $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.
If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
We are no better off today (12/08) than we were 3 months ago because we have a decrease in the equity positions of banks because other assets are going sour by the moment.
Interestingly, maybe that is why Kanjorski, and likely more Democrats, shifted to the camp a few months ago that more time was needed to make a correct decision (which may explain Geithner's decision to postpone the "bank-rescue" announcement several times), instead of rushing into another half-baked plan. Very scary stuff.
And for all who claim that Kanjorski is yapping with a few screws loose upstairs, taking a look at archived footage from the September 24, 2008 House Financial Services hearing at which both Paulson and Bernanke are present, Kanjorski asks Paulson this very question, and states to Paulson, that the information came originally from him. Now, Kanjorski may be anything but not senile as he is merely repeating facts that Paulson tells him. And Paulson does not refute the facts...