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View Diary: I called my wife and said, ‘Get $30,000 in cash out of the bank today.’ (93 comments)

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  •  There was also the Washington Mutual bank run... (2+ / 0-)
    Recommended by:
    hungrycoyote, elwior

    ....in early to mid-September of 9% of its total deposits.  (To us consumers on the West Coast, this was "shit was getting real".)

    On Thursday, September 26, the FDIC seized WaMu, and I was travelling back to Pittsburgh for my class reunion.  Hank Paulson was on TV, and I was on a layover at O'Hare.  People waiting for flights were laughing at Paulson doing the "Remain calm!  All is well!" speech, like Chip (Kevin Bacon) in Animal House.

    There was a palpable sense of "we're all fucked" - even the conservative bank officer I was talking to at the reunion was saying "bail me out!" when he wanted a drink....

    9-11 changed everything? Well, Katrina changed it back.

    by varro on Tue Oct 02, 2012 at 10:30:50 AM PDT

    [ Parent ]

    •  And, what is seldom mentioned is the (1+ / 0-)
      Recommended by:
      hungrycoyote

      Lemahn collapse had started a run on money market funds by large investors.  Unlike the "little people" those guys understood mm funds were not insured.  Thankfully the gov ernment stepped up and announced they would insure for six month and that stopped the flow.

      Proud Democrat since 1960.

      by Lying eyes on Tue Oct 02, 2012 at 04:22:09 PM PDT

      [ Parent ]

    •  And the news was explaining FDIC ... (1+ / 0-)
      Recommended by:
      hungrycoyote

      ... what it meant, whether or not people would be able to withdraw whatever savings they had if their bank was the next to fail, etc.

      It was a terrifying time.

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