Via Political Wire:
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.”
A mere trifle then.Tweet