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REPORT ABUSIVE REPLY
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Message Subject
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The Grand Finale Pt. III: Janet Does Davos (latest update p. 195)
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Poster Handle
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Saddletramp |
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Post Content
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TRAMP:
Could you as a former banker answer this question for me:
Was Kanjorski telling the truth when he said there was a draw down in money market accounts of $550 billion, and that if they didn't shut it down it would have been $5 trillion by 2 pm that day? If yes, where would all that money have gone?
Thank you for your answer.
Quoting: no bones I was already out of banking at that time (I retired at the end of 2005), but all of my old friends haven't been that worried until just recently. I don't know the exact figures, but I wouldn't doubt people were grabbing their money and running for the hills. Especially from investment banks that were all in doubt at that time because of changes in the rules about how they accounted MBS that had any problem loans in them. You have to realize, banks like Lehmen and Bear Stearns had their balance sheets slashed in half by Basel 2.5 regs on "Mark to Market" for MBS... But that's a shit ton of money to cash out of what I'm assuming is mostly UST and commercial paper. I guess what I'm asking is that when you're cashing out of such a deep and liquid market in such a short period of time as it is carshing, where do you go? Foreign currencies? Commodities? Strippers and blow lol? I imagine a lot of it was going overseas, at the time with all of the shotgun weddings being arranged by the Fed, the European Banks were looking pretty good...
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