Apocalypse economy, or the world nearly crashed six months ago. So says United States Congressman Paul Kanjorski (D-Penn):
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.
What? happened?
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...
If they had not done that...
If, indeed.
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