Today we look back to the recent past with singleness of purpose. Context and edification for the present economy is what we’re after. We have questions…
How come the recovery has been so weak? Why is it that, nearly seven years after the official end of the Great Recession, the economy’s still mired in a soft muddy quagmire? Squinting, focusing, and refocusing, there’s one particular week that rises above all others.
Hank the scaremonger – in meetings behind closed doors, he threatened Congressmen with financial apocalypse and even martial law if they didn’t hand over $700 billion in tax payer money with essentially no oversight. This has been independently confirmed by several Congressmen. Griffin’s “The Creature from Jekyll Island” is often decried as “conspiracy theory” by establishment shills, but it inter alia contains an eerie prediction of practically everything that eventually happened in 2008.Photo credit: Talks at Google
On Saturday September 20, 2008, Treasury Secretary Hank Paulson delivered a draft of the Troubled Asset Relief Program (TARP) to Congress for review. If you recall, it had been another wild week. On Monday, September 15, after 158 years of operation, Lehman Brothers vanished from the face of the earth…Dick Fuld, “The Gorilla,” be damned.
All week the sky relentlessly fell on financial markets. Even money market funds were in full panic. In fact, a record $169.03 billion of capital had vacated money market funds in the week ended September 17.
That same day, the Wall Street Journal’s headline was, “U.S. to Take Over AIG in $85 Billion Bailout.” On top of that, the Primary Fund broke the buck – falling to $0.97 cents a share. The SEC also went so far as to impose a 10 trading-day ban on short sales of 799 financial stocks.
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