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2008 Market Crash Should be Investigated
By
Jeff Lukens
NewMediaJournal.us
Almost
two years after the mortgage crisis and
stock market
crash, no one seems to wonder about the "September surprise" that
shifted the 2008 presidential election to an unknown leftist politician
who had been elected to the Senate only two years before. A pulp-fiction
writer could hardly have created a more contrived and bizarre story. But
this was not make-believe. No, it is now our own gritty reality show
that we only wish we could turn off.
The week of Sept. 15, 2008, was a debacle of huge
proportions. On Monday, Lehman Brothers filed for bankruptcy while other
lending institutions lined up like dominoes teetering on the edge of
bankruptcy. But the week was hardly over. On Thursday, an electronic run
on the banks occurred. In an unprecedented move, the Treasury and the
Federal Reserve had to act together to stop what had become a
full-fledged panic. On Saturday, Sept. 20, The Wall Street Journal
recounted events of that previous Thursday:
“Instead of lining up at bank windows, investors
were unloading financial assets on their PCs. Credit markets had seized
up, to the point that even routine daily settlements had stopped until
banks had the actual securities or cash in hand.”
“Investors were rushing out of these [Treasury and
Federal Reserve] funds -- $105 billion out of $1.8 trillion on Thursday
alone -- which in turn caused the funds to redeem their commercial paper
investments.”
“Issuers of that
paper then had to find new funders, which in a pinch are banks. But
jittery banks were refusing to accept paper from even worthy companies
amid the panic, creating a larger credit breakdown. In response,
Treasury will now insure nonbank money-market fund deposits for the next
year, to slow money-fund redemptions.”
For such a large and coordinated exodus of funds to
occur in U.S. markets, something more than individual “investors” at
their PCs had to be in play. Large and well-managed hedge and
mutual funds
were undoubtedly behind much of the move.
A few months later on a C-Span interview, Rep. Paul
Kanjorski, House
Capital Markets
Subcommittee Chair, described that day:
“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 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. It 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.”
The $550 Billion withdrawn in an hour or two that
Rep. Kanjorski refers to in his statement has never been independently
confirmed or refuted.
In
mid-September, John McCain was ahead of Barack Obama in some polls by
about 3 percent. By Oct. 10, the S&P 500 Index had lost 25% of its value
from what it had been a month before. The crash was a major calamity for
the McCain Campaign. And now, with Obama in the White House, it has
become a calamity for us all.
The
fact remains that the identities of those who withdrew their money that
week were never disclosed. And, knowingly or not, they created a panic
that altered the course of the election. One can only wonder whether
something more than normal market forces was at work.
Courtesy of Barney Frank and
Chris Dodd, the crisis came about by the uncertain value of subprime
securities held by Fannie Mae, Freddie Mac, banks, saving and loans, and
other lending institutions. A declining market in itself is not
noteworthy, but to induce a panic in the midst of a presidential
campaign, if ever proven, would be reprehensible and an outrage to the
American electorate.
While the
stock market collapse was a disaster for your average
IRA
or 401(k) account, some investors benefited handsomely. It is widely
agreed that hedge funds profited by selling short the collapsing market
in 2008, and chief among them was George Soros’ hedge fund. Soros may
have personally had the motivation, method, and opportunity to trigger
the crash.
Soros' overseas-based
hedge fund evades much scrutiny, and its activities that week left
almost no trail. Could Soros and his hedge fund be behind many of the
withdrawals of that week, and particularly on that Thursday? We need to
know. The massive outflow of U.S. funds to offshore accounts that
critical week during the campaign could be a coincidence, but it is
doubtful.
George Soros is a
multi-billionaire answerable to no one. Hastening a market meltdown to
give the election to Barack Obama would fit his pattern of profiting
while destroying the social order of his target country. Triggering a
crash in 2008 would also serve his political investments.
Soros is obsessed with power. He
wants a One World Government, redistribution of wealth, open borders,
and universal health care. He is determined to change America forever by
deconstructing its sovereignty and ability to defend itself. Soros was a
huge backer of Barack Obama, and now his anointed president is
determined to change America to their mutual view.
Soros made his fortune by
short selling
currencies and then pouring substantial amounts of his private wealth
into organizations to subvert various nations. He nearly bankrupted the
Bank of England by shorting the pound in 1992. He wrecked the Malaysian
economy in 1998, and subsequently that of Indonesia as well. He is
responsible for stirring-up instability in Africa, the Balkans, Eastern
Europe, and the former Soviet republics.
Over the years, Soros has positioned himself to take
control of the Democrat Party through the hundreds of 527 organizations
he has helped financed. These organizations have become a "Shadow Party"
unto themselves, and manipulate public opinion for their own end.
Among them: the National
Education Association, ACORN, AFL-CIO, American Federation of Teachers,
The Media Fund, the Open Society Institute, Planned Parenthood League,
the Sierra Club, America Coming Together, the Huffington Post,
MoveOn.org. If a left-wing organization is in the news, it has probably
received money from George Soros.
Why have the identities never been reported of those
who withdrew funds that week? Shouldn't there be even some curiosity
about an event that wiped out the jobs and life savings of so many
people? And why has there been no follow-up inquiry by into Rep.
Kanjorski’s statement? There needs to be a public investigation
concerning the amounts and offshore destinations of the funds withdrawn
from U.S. markets that precipitated the crash.
Did an unwritten partnership exist between George
Soros and Barack Obama? Could Soros, through Obama, be seeking a "velvet
revolution" in the dismantling of our nation as he has done elsewhere?
These questions need further investigation. With the Alinskyite tactics
employed by Team Obama, none of this is beyond the realm of possibility.
Americans recoil at the thought
of having their elections manipulated by outsiders. As long as Democrats
control Congress, there surely will never be an effective inquiry into
this affair. Perhaps a GOP victory this November will allow a thorough
examination finally to begin. Add this to the many investigations the
GOP will need to make when they finally take back Congress.