From Hyde to Jekkyll: Goldman And Morgan Morph Into Banks by Dr Joe Duarte September 22, 2008
excerpt... it's the same thing I've been told from a few other sources as well.
According to the Post "Had the Treasury and Fed not quickly stepped into the fray- on Thursday- morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level - a 22 percent decline! - while the clang of the opening bell was still echoing around the cavernous exchange floor."
The Post added: " According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning. The panicked selling was directly linked to the seizing up of the credit markets - including a $52 billion constriction in commercial paper - and the rumors of additional money market funds "breaking the buck," or dropping below $1 net asset value."
The announcement of government backing settled those fears as well as the 100 billion overnight repo. Markets will probably settle back down to pre repo levels again as it was a none event and Asian and European liquidation continues.
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