DEPRESSION ECONOMICS ... BANK RUNS IN AMERICA

From Dailykos ...

How bad are the problems we face in the economy? Watch Rep. Kanjorski (D-Penn) describe how close we came to a bank run back in September, and the problems that we face today:



Here's the money quote, about 2:10 into the clip:

... 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.

Now we talked at that time about what would have happened if that happened. It would have been the end of our economic system and our political system as we know it ...

Here's what Rep. Kanjorski (D-Penn) had to say 4:58 into the clip:

We're really no better off today than we were three months ago ...

Kanjorski's prognosis isn't much better:

We don't know.

This Welcome to Hooverville post from Dailykos is not encouraging either. We'll talk about this and more on Saturday's program.

- Mark