[Hermes]

I present for your enjoyment above: Cid's true literary voice.

His writing can be distinguished from the more scholarly pieces he lifts because it sounds like an 8th grader is speaking, rather than a journalist or other able writer.

[vision-master]

$this->bbcode_second_pass_quote('Hermes', 'I') present for your enjoyment above: Cid's true literary voice.

His writing can be distinguished from the more scholarly pieces he lifts because it sounds like an 8th grader is speaking, rather than a journalist or other able writer.

[Cid_Yama]

[ReverseEngineer]

The Quotes Cid drops on are readily recognizable as such, they all are written in Newzspeak. It doesn't have to be gray shaded to be recognized. The only conflict I have with this is dropping on posts that consist exclusively of a quote without any original analysis by the poster or at least a Set Up Line.

At least I can say with assurance this is NOT something I will ever be attacked for

Reverse Engineer

[yesplease]

Does anyone have a link to this drop, maybe via a financial website chart or something?

[bratticus]

More complete transcript (I keyed this in while using Youtube like a dictaphone.)

$this->bbcode_second_pass_quote('C-SPAN', '[')b]C-SPAN Interview with

Rep. Paul Kanjorski
D-Pennsylvania, 11th District
Capital Markets Subcommittee Chair

Filmed on: [circa December 2008]

1:52 elapsed time in video

C-SPAN: What would you say, though, then to someone who says "Paul Kanjorski is supporting Wall St. but not Main St. with this latest $825 billion package now making it through the house?"

2:01 elapsed time in video

KANJORSKI: They are right to this extent--why did we do that? We did that because the Secretary--look I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th.

Here's the facts and we don't even talk about these things. On Thursday [September 18th 2008] at about 11 O'clock in the morning the Federal Reserve noticed a tremendous draw down of money market accounts in the United States to the tune of $550 billion—was being drawn out in a matter of an hour or two. The Treasury opened up its window to help--they pumped $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. That's what actually happened. If they had not done that their estimation was that by 2 O'clock that afternoon $5.5 trillion would have been drawn out of the money market system of the United States. It would have collapsed the entire economy of the United States and within 24 hours the world economy would have collapsed. Now we talked at that time about what would happen if that happened. It would have been the end of our economic system and our political system as we know it and that's why when they made the point
"we've got to act and do things quickly" we did.

Now Secretary Paulson said "Let's buy out these sub-prime mortgages". That's why he came to Congress--but he said "give us latitude and large authority to do many things as we decide necessary and give us $700 billion to do that." Shortly after we enacted our bill with those very broad powers the UK came out and said "No, we don't have enough money to buy toxic assets. Instead we're going to put our money into banks so their equity grows and they're not bankrupt." The UK started that process and that's true--it was much cheaper to put more money in banks as equity investments than to start buying their bad assets because it became early determined that we probably have to spend three or four trillion dollars of taxpayer's money to buy these bad assets. We didn't have--we only had $700 billion dollars. So Paulson made a complete switch--went in and started putting money in and buying securities and re-investing in the banks of the United States. Why? Because if you don't have a banking system you don't have an economy.

Although we did that it wasn't enough money and as fast as we did that the economy has been falling and the reason last week—we're really no better off today than we were three months ago because we've had a decrease in the equity positions of banks because other assets are going sour by the moment. Now we've got to make some decisions. Do we pour more money in? To what extent that money goes in? I myself think we ought to take the time, analyze where we are, have the people understand. When you listen to the lady who just got off the telephone she is near panic and she doesn't think her government is acting properly or acting in her behalf. I think it's important we start informing that lady as to what really were the facts, what happened and get input from her. Maybe she has a better idea. You know we're not any geniuses in economics or finance [???], we're representatives of the people. We ought to take our time but let the people know this is a very difficult struggle. Somebody threw us in the Atlantic Ocean without a life raft and we're trying to determine what's the closest shore and whether there's any chance to swim that far.

[turner]

Why is this guy Chair of the Capital Mkts Subcommittee if he is 'not any genius in economics and finance'?

[bratticus]

$this->bbcode_second_pass_quote('turner', 'W')hy is this guy Chair of the Capital Mkts Subcommittee if he is 'not any genius in economics and finance'?

[drgoodword]

Cid, thanks for posting about this admission from Congressman Kanjorski. While we all knew a new level of crisis had been reached last September with the failure of Lehman, it looks like no one--not even the biggest economic bear--knew how bad it really was. I've sent this info along with a link to one of the very few media sources that bothered to report it to a few friends, and all were shocked.

[pedalling_faster]

$this->bbcode_second_pass_quote('Cid_Yama', 'T')he federal government on Friday stepped in to bolster the teetering $3 trillion money-market mutual fund industry and stem a wave of withdrawals that resembled a Depression-era run on the banks — sparked largely by panicked institutional clients rather than individual investors in what are normally considered to be the safest of investments.

[timmac]

$this->bbcode_second_pass_quote('Hermes', 'I') present for your enjoyment above: Cid's true literary voice.

His writing can be distinguished from the more scholarly pieces he lifts because it sounds like an 8th grader is speaking, rather than a journalist or other able writer.

[smallpoxgirl]

Good find Cid. Thanks for posting it.

[Cid_Yama]

The people playing the ultrashort ETFs that day were robbed!

Although, ProShares would probably not have still been there to pay off.

[bluekachina]

So, does that mean that with all the hedge fund redemptions coming up again, especially all the ones that wouldn't let you take out your money last quarter, are we going to see a repeat?

[the48thronin]

$this->bbcode_second_pass_quote('bluekachina', 'S')o, does that mean that with all the hedge fund redemptions coming up again, especially all the ones that wouldn't let you take out your money last quarter, are we going to see a repeat?

[kublikhan]

You might want to mention next time that this happened 5 months ago. When you said Thursday, I thought you meant just this last Thursday.

[Mesuge]

There are several versions of this C-span clip floating just on youtube,
where this particular comment appeared:
http://www.youtube.com/watch?v=-xKPcyvlfnc

---
blackrubberbag:
He is saying that the FED saw a bank run and quickly injected money & increased the FDIC insurance to 250k per account to stop the panic.

The immediate action stopped the bank run and they only had hours to fix the problem.

Wow.

One small problem with his fantastic tale, the FDIC insurance was not increased until October 10, 2008

This man is being less than honest.
---

?

[patience]

I think it's obvious that TPTB are scared spitless, and making whatever moves they think will help whenever they think of something. Looks to me like grabbing at straws. I think CB's and politicos are aware of their limited abilities to deal with the situation, and trying to keep up a good front to bolster what confidence they can. The psychology of fear has, however, stabbed deeply into finance everywhere it seems. Jawboning looks to be their most useful tool now.

[drgoodword]

$this->bbcode_second_pass_quote('Mesuge', '
')
One small problem with his fantastic tale, the FDIC insurance was not increased until October 10, 2008

This man is being less than honest.

[Cid_Yama]

They just had it on Keith Olbermann tonight, right after a 400 point drop in the Dow.

Should have people jittery tomorrow.