September 2008 – What Happened? What Could Have Happened?

The collapse of Bear Stearns in early 2008 was the shot heard ’round the world but it seemed no one was listening. An over leveraged balance sheet riddled with mortgage derivatives and credit swap defaults were being called in by numerous entities.  There was blood in the water, the sharks were circling their prey and the old line prestigious Bear Stearns was desperately gasping for it’s last breath.  Even though the building they owned and occupied was worth over one billion dollars, the mighty Bear agreed to be acquired by JP Morgan for $239 million.  It’s ironic when you consider that a famous New York Yankee makes that much playing baseball in the same town.  Eventually the final negotiated price came in around ten cents on the dollar but that didn’t deter from the devastation that had occurred and should have served as a precursor of what was to come.
On Wall Street it seemed to be business as usual, someone’s misfortune is someone else’s windfall, but the collapse of Bear Stearns became like a crack in the dam which then became a series of fissures bleeding into all aspects of the global financial markets.
By September the mood on wall street was morose at best.  Rumors that Lehman Brothers (another old stalwart of wall street) had worse troubles than Bear Stearns sent Cash Flow Business Loans their stock on a nose bleed drop.  Collectively the financial stock sector got caught up in a breathtaking spiral downward accentuated by millions of short sellers.
Merrill Lynch was teetering on bankruptcy pulling off an eleventh hour rescue by Bank America (which later on became the spotlight of controversy) while Lehman was desperately looking for someone to bail them out for 20-30 cents on the dollar.  Unfortunately for them there were no takers.  The reality was that most of the major players knew Lehman was toast long before September, and their chairman was like a deer caught in the headlights.
Much has been written about the financial meltdown that began in September 2008 but there Methods Of Alternative Investment Proposals is even much more that has never been told or at least conveniently overlooked.
The week following the Lehman bankruptcy/Merill near bankruptcy a strange phenomenon took place in one of the most sacred of all financial instruments. Money markets “broke a buck”.
The term “broke a buck” refers to the price of money market shares falling below one dollar per share.  Money market funds are liquid investments on a daily basis that trade in the multiple billions daily from institution to institution.  Consumers use them as a checking/savings account alternatives.  They are considered mutual funds and therefore are assigned a price of one dollar per share for trading purposes and they pay an interest rate that  changes daily but the price never deviates from one dollar.  Until September 18th.
Early that morning there was a report  to the fed of an unusual amount of withdrawals from the nations liquid reserves and the withdrawal rate was accelerating exponentially.  By 10:30 A.M. it was determined that an electronic “run” was in play on the nations money market funds and the sources withdrawing the funds could not be traced.  It could have been the Chinese, the Russian’s, the Arab’s or a group working collectively to undermine our nations wealth.  The amount withdrawn by 10:45 was a staggering $550 Billion and climbing and an estimated $5 Trillion stood to be lost had the fed not shut down the system by 11:00 A.M.
This information was kept hidden from the public until a hearing in the senate took place in January 2009 and even then it was mostly ignored by the media.
If someone were to remove $5 Trillion dollars from our economy in one day it would make our current financial crisis look mild by comparison.  We would have nothing to bargain with in the global financial markets and be at the mercy of the rest of the world.  America would have been crushed without a lot of alternatives.
How did this happen and who did it?  More importantly, why was it covered up?
There is much more to this near catastrophic event  than this brief summary explains.
The story will be told but will anyone be listening?

READ  How Successful Business Owners Use Accounting