Seconds away from disaster

[arabianights]

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

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 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.

 

[everyonerich]

so those who took (withdrawn) the money are the ...? US always can back their economy with weapon of mass destruction anyway.. long live america..

 

[TomTom]

Its not if this will happen again be when ?
Tomorrow, next week, next month ?
Fed has max of 4 trillion left for loner term, allready spent 6 trillion.
Its frightening that he has vurtually unlimmited short term funds though.
For evey dollar lossed in these markets some one some where makes a dollar.
Its just a mattor of been on the right side of the fence.

 

[intradaybill]

"...$550 billion was being drawn out in the matter of an hour or two"

Going where? Cash transactions at bank locations or electronic transfers out of some specific investments banks?

It doesn't make sense...

 

[rathcoole_exile]

"...$550 billion was being drawn out in the matter of an hour or two"

Going where? Cash transactions at bank locations or electronic transfers out of some specific investments banks?

It doesn't make sense...

i think spanish was withdrawing some of his trading profits ?
:whistling

 

[fifty2aces]

"...$550 billion was being drawn out in the matter of an hour or two"

Going where? Cash transactions at bank locations or electronic transfers out of some specific investments banks?

It doesn't make sense...

Probably T-Bills. The transfers were electronic.

 

[everyonerich]

more info : Daily Kos: State of the Nation

 

[nile_croc]

Interesting little article that came out around that same time...

Germany takes hot seat as Europe falls into the abyss - Telegraph

 

[teojh]

Its not if this will happen again be when ?
Tomorrow, next week, next month ?
Fed has max of 4 trillion left for loner term, allready spent 6 trillion.
Its frightening that he has vurtually unlimmited short term funds though.
For evey dollar lossed in these markets some one some where makes a dollar.
Its just a mattor of been on the right side of the fence.

right. The news always reports that trillions were wiped off around the world due to the crash. But they don't understand it has just been transferred to the shorters.