Who attacked our economy?

20 08 2009

bad economyIn February of this year, there was an article in my local newspaper entitled ‘Who attacked our economy? Why does no one care?’ ┬áThe article was written by Diana West of the Washington Times. The article states that there was an interview aired on January 27 on CSPAN with Rep. Paul Kanjorski, D-Pa. It has received no coverage in the mainstream media.

Kanjorski states that in the middle of last September, he was there when the Secretary of the Treasury Hank Paulson and the Chairman of the Federal Reserve Ben Bernanke came and talked to members of Congress and told them that on the previous Thursday around 11 A.M., the Federal Reserve noticed a tremendous drawdown of money market accounts in the U.S. Within an hour or so, $550 billion was drawn out. The Treasury  pumped $105 billion into the system and realized they could not stop the drawdown. There was evidently an electronic run on the banks. Instead, they closed down the operation, closed the money accounts and announced a guarantee of $250,000 per account so there would be no panic.

Kanjorski said if they had not done that, by 2 P.M., $5.5 trillion would have been drawn out of the money market system of the U.S. and would have collapsed the entire economy and within 24 hours, the world economy would have collapsed.

Rush Limbaugh talked of this on the air, but no one except a couple of blogs has covered this story. It is reportedly available on youtube.

Paul Kanjorski is chairman of the Capital Markets Subcommittee of the House Financial Services Committee so I would think this story certainly has credibility. On the CSPAN report, no one asks who or what was responsible for that electronic run on the banks to the tune of $550 billion plus the $105 billion that was put into the system.

Since we now have a stimulus package that is going to cost everyone in this country much, much in the way of taxes over the next couple of generations, I would like to know where the money went, who got it, and where is it now. I would like to see it put back in the Treasury to help pay for some of this reckless spending we are seeing every day.

I am going to write all my congressmen and ask them to look into this story and to give me an answer in return. Maybe we can all make enough noise to at least get a congressional hearing on the matter.

Diana West has a blog at dianawest.net. Her email is dianawest@verizon.net if you want to check this out.

Write your congressmen!