On Thursday, at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two... The Treasury opened up its window to help. They pumped $105 billion into 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 and there. And that's what actually happened... If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.
At 2:20 in the video -->
http://www.youtube.com/watch?v=_NMu1mFao3w
I've seen the above in a few recent forums. It is scary. No one actually knows how to solve this problem. We don't know what is next... except lots of new lost jobs and major debt.
My house could be worth 50K or MORE less then when we bought it 3 1/2 years ago. And we live far from any hot real estate market. We can't even move or refinance.
Good thing that Tam has a gov job. And good thing that I am super busy with work. But our company is worried just like all the others.
This is really scary stuff.
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