The Great Recession begins: Investment bank BNP Paribas, of Paris, France, suspends customer withdrawals from three its investment Funds citing a “complete evaporation of liquidity in certain market segments of the U.S. securitization market.”  In other words, trading in the mortgage securities market had ceased, leaving many financial institutions short of cash and saddled with assets that they couldn’t sell at any price.  Stocks fell sharply on both sides of the Atlantic, due to a “complete evaporation of liquidity”

       The European System of Central Banks almost immediately opens a 96,800,000,000 Euro (130,000,000,000 “dollar”) line of credit to head-off an institutional run on the deposits of the three Funds.  BNP Paribas is one of the two largest banks in the European Union, and in the United states owns Bank of the West.

       Postscript: This began a succession of investment banks around the world being short on currency (Bills of Credit) as more and more subprime mortgage began to go into default, and the securities that were supported by these mortgages could not be sold at any price.  Also, the privately owned Federal Reserve System of (central) Banks buys 24,000,000,000 “dollars” in securities (debt obligations) from the nation’s commercial banking system to assuage credit fears.  The Dow Jones 30 Industrial index falls 387.18 points or 2.8 percent as worry over the Great Recession sparks a “fire sale” in stocks.

       [restored 5/4/2024]

       While the United states Armed Forces (private mercenaries) are stationed at 737 bases, in 130 nations around the world, defending “all freedom-loving people everywhere in the world,” judge Thomas J. McAvoy, of the Federal court for the northern district of new york, issues an injunction ordering the We the People Foundation to either turn over its list of supporters to the Internal Revenue Service, or shut down its web site.

       [restored 5/4/2024] Thanks to Bill Holmes for this entry.