How The World Almost Came To An End At 2PM On September 18

Very Interesting – So how closed did the nation’s banking system come from a total meltdown on September 18th of last year? Extremely close, within hours as a matter of fact.

On C-Span, Rep. Paul Kanjorski (D-PA) explained how the Federal Reserve told members of Congress about an electronic run on the banks “to the tune of $550 billion dollars” within “an hour or two” last fall.

According to Kanjorski, on September 18, 2008 the Fed tried to “stem the tide” by pumping money into the financial system but it didn’t work and decided instead to announce an immediate increase in deposit insurance to $250,000 per account to stop the panic.

Said Kanjorski: “If they had not done that, their estimation is that by 2 p.m. 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.” –Political Wire

Watch and listen to what Rep. Kanjroski had to say about this on C-Span yesterday morning. Its kind of scary if you really think about it and to find out that our banking system is not much better off today then it was it was 4 months ago makes you want to scratch your head. 
After hearing this, I now understand why Treasury Secretary Geithner feel that the new financial bailout plan needs to be so bold and large in scope.

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Filed under bailout, banking system, C-Span, economy, Federal Reserve, Financial crisis, meltdown, Rep. Paul Kanjorskie, Treasury SecretaryTim Geithner, US Treasury

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