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Tuesday, February 10, 2009

Run on Money Market Funds

 
Rep. Paul Kanjorski C-Span tells us why there was a need for the TARP and why they could not tell what the "abyss" that they kept referring to. 

Here is an excerpt from the video.

On Thursday at about 11:00 am, the federal reserve notead a tremendous draw down of money market account to the tune of $550 billion was drawn out in a matter of hour or two.  The treasury opened it's window to help.  They pumped $105 billion into system and quickly realized they could not stem the tide.  We were having a electronic run on the bank.......

It would have been the end of our polictical system and economic system as we know it...."


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