September 2008: Looking Into the Abyss

"There is carnage on Wall Street ... the shares of the major financial stocks are plummeting and triggering a major sell-off in the markets ... the damage is widespread ... the Dow Jones Industrial Average is plunging ... oil is plunging." You can hear them hollering on the floors of all the major stock exchanges. "We are down 260 points in literally a split second."

"The Dow Jones Industrial Average is now over 500 points in decline in a single day." "The housing report is not only grim but this is shaping up to be the worst housing market in over a generation." "We are now into historic territories." "Investors are getting their heads handed to them as another U.S. banking institution nears collapse."

The President's Working Group is going into emergency session with the Secretary of the Treasury, Henry Paulson, and the Federal Reserve Board.

"President Bush's Chief of Staff, Joshua Bolton, is calling back in an hour ... he's with the president and he's going to want to know what I think we should do."

"This isn't Lehman Brothers Hank. This is too big to fail."

"This is just an insane situation."

"This is now!"

"There is about $70 billion out there in credit default swaps held by roughly 17 banks and we do not know where the bottom is. How much are you guys thinking?"

"At least 5."

"I think 6."

"Hank, I frankly think 'Harry' and 'Charlie' are low ... I think we are talking $7-$8 hundred billion."

"Selling this to Congress is the problem. They are going to want to know where the money is going. They will jawbone this to death."

"Scare 'em!"

"How?"

"Tell them the truth!"

"The government has got to restore confidence. It we don't stop the bleeding in three days half the banks in this room are out of business. In five days, we're all gone."

"Do you men realize what you've done here? You are asking for the biggest bailout in the history of this country. You're talking nationalization ... socialism. I have fought it all my life."

"And if we don't get it Hank, there won't be any history. The music stops ... the ball is over."

"It's 1929 but it will be get worse now because it will go much faster. Money markets will dry up around the world in less than a week. ATMs will stop spitting out bills. The Federal Deposit Insurance will collapse. Banks will close. Mobs will panic. It's going to be the end of the world Hank!"

Remember the $700 billion bank bailout passed on October 3, 2008??? Maybe George W. Bush saved the world after all!