The Capital Markets Subcommittee Chair, Rep. Paul Kanjorski of Pennsylvania, tells C-Span how the world economy almost collapsed in a matter of hours.
At 2 minutes, 20 seconds into this C-Span video clip, Kanjorski reports on a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occured over the period of an hour or two.
Kanjorski: "The Treasury opened its window to help. They pumped a hundred and five billion dollars 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, five-and-a-half trillion dollars 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."
"It would have been the end of our political system and our economic systems as we know it."
Compared to 75 years ago, Americans spend less on reading, alcohol, tobacco, clothing, and food. They spend more on education, entertainment, and transportation, but the real bank-breaker is how much more Americans spend on housing, even adjusted for inflation.
I’m at Institute for the Future in Palo Alto, CA today (I’m on staff) at the Positive Platform Design Jam, where we had Cornell historian Louis Hyman give a presentation called “Unnatural Capitalism: How the New Deal Reinvented Capitalism and Why We Need to Do It Again.” You can watch a video recording of his […]
UC Irvine economist Peter Navarro, a hand-picked Trump economic advisor: “Navarro has never met Trump in person. And as for speaking with him by phone, he acknowledges, ‘I have never had the pleasure.'”
Although there will never be a consensus about the best way to make coffee, any coffee connoisseur will agree that controlling the grind of your beans and balancing water temperature are the keys to a tasty cup. Since your plastic coffee pot doesn’t really allow for that kind of customization, going back to the French […]
Not all hackers are malicious information thieves—white-hat ethical hackers work with technology companies to ensure the security of their computer systems and user data. With all of today’s high-profile data breaches, ethical hackers are in considerable demand. To learn these critical skills and break into the high-paying cyber security field, try taking the courses in this […]
Making people aware of goods and services in the digital age requires an array of new strategies from social media and email to number-crunching tools like Google Analytics. To get a handle on the techniques used to capture attention and convert traffic into dollars in a crowded online environment, the Full-Stack Marketer Bundle offers 22 hours of training to get […]