While most of the attention in the Chinese shadow banking system is focused on the Credit Equals Gold #1 Trust's default, as we first brought to investors' attention here, and the PBOC has thrown nearly CNY 400 billion at the market in the last few days, there appears to be a bigger problem brewing. As China's CNR reports, depositors in some of Yancheng City's largest farmers' co-operative mutual fund societies ("banks") have been unable to withdraw "hundreds of millions" in deposits in the last few weeks. "Everyone wants to borrow and no one wants to save," warned one 'salesperson', "and loan repayments are difficult to recover." There is "no money" and the doors are locked.
The locked doors of one farmers' co-op...
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Bernie Madoff was small potatoes people.
ReplyDeleteother reports I've been reading today reports there is a "bank run" happening now in China. there are several countries (at least 10) that are dealing with riots, food, shelter, and energy shortages. this is a pre-curser of what is to come here soon...
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