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Is The China Bank Run Beginning? Farmers Co-Op Unable To Pay Depositors
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...
Shadow Banking has grown remarkably...
...in recent years, opened dozens of Yancheng local "farmers mutual funds Society", these cooperatives approved the establishment by the competent local agriculture, and received by the local Civil Affairs Bureau issued a "certificate of registration of private non-enterprise units."
As savers are promised big returns...
Deposit-taking and lending by cooperatives operated operation, and to promise savers, depositors after maturity deposits not only can get the interest, you can also get bonuses.
But recently things have turned around...
However, beginning in early 2013, Yancheng City Pavilion Lakes region continue to have a number of co-op money people to empty, many savers deposits can not be cashed, thus many people's lives into a corner.
Dong-farmers in Salt Lake Pavilion mutual funds club, a duty officer's office, told reporters, because many people take money, put out loans difficult to recover, leading to funding strand breaks.
Rough Google Translation:
Salesperson: ...the money has been slowly falling and in the end is difficult to ask for money, right? And now there is no money coming in, now people don't want to save money, and take all the money.
Reporter: But it's their money, they should be able to...
Salesperson: I know I should [given them money]; however, when the turn started, their is no money, we get cut off and lenders and borrowers took off...
One depositor blames the government (for false promises):
The bank has a deposit-taking his staff, he would say that he is a government action that has the government's official seal, to give you some interest, as well as the appropriate dividends, because we believe that the government, so we fully believe him , we put the money lost inside, who thought in November, Xi Chu who told us that something was wrong.
But don't worry - this should all be settled by 2016...
Yu Long Zhang: we put all of his certificates of deposit are received out. You are only responsible for the loan out of the money back to the people against. The people's money has been invested in other projects go, we have to be tracked to ensure no loss of capital assets, can dispose of his assets disposed of, can recover quickly come back.
Reporter: There is a specific timetable yet?
Yu Long Zhuang: 2014 cashing out the entire program.
Reporter: When did all of these things can be properly resolved?
Yu Long Zhuang: the latest is 2015, 2015, all settled.
So, for the Chinese, their bank deposits have suddenly become highly risky 2 year bonds...
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up ten fold newb
just bought some nice things from tiger direct (new places accept btc everyday) stay in the past smartguy
My business doesn't accept it and never will. For shits and giggles I checked the quotes which are today 20% below where BTC was 2 weeks ago. Firesale? LOL
Keep 'em in your "wallet". MEGA LOL
If this is a currency war, your kind is the proverbial Cannon Fodder (TM walküre)
BTCers are the Cannon Fodder in this round of a currency war!
I finally figured out how to label this nonsense!
The price on Jan 1 was $742. The price this morning was around $810. Not exactly a 20% drop. You must have it mistaken for the price of Silver.
Please use real numbers and not stuff you pull out of your ass.
WHATEVER!
it breached $1000 a short while ago
so much volatility... so little time
who cares to keep up with this shit?
Dark, have not read you in a while, good to see your post. While I often disagree with your point of veiw, it is the alternate veiw that challenges us to rethink our own.
What a tedious world it would be, if all agreed with me.
I wonder how long it took for the laughter to die down when they chose the name of: "Credit Equals Gold #1 Trust"?
Mr. Wong, meet Mr. Madoff.
Two Wongs do not make a Wight.
ZH is my only place where I can relax outside meditation. thanks to commenters. amazing stuff you guys know here.
Between 70-80% of ZH value added comes from the community, IMO.
Indeed, in fact sometimes the nom de plume says volumes about the commenter, and yes the herd is in dire need of redirection.
Thanks
Try Google...Images...search for terms including Lesbian and Jelly Wrestling.
what's this? http://www.icij.org/offshore/leaked-records-reveal-offshore-holdings-chi...
me no speaky for jinglish. no speaky
This is probably like what happened to American farmers during Farmaid in the mid 1980's.
Bankrupted, the small, independent, farmers that belong to these co-ops will lose their farms to be bought by conglomerates making the land more productive for the betterment of all.
The whole thing is probabaly by design. The only way this can backfire is if enough (or the right) Foxconn employees who have been sending their paychecks to their parents on the farm stop making Iphones.
I wonder if the Dong famers will be invited to the executions.
sum ting wong?
-NYSEArca
17.97 1.39(8.38%)
Made a nice 3% or so today triple shorting the Dow.
I like when that happens.
We need to de-regulate the banks so they can use our deposits to make bets on the stock market. Oh wait.
Vapor Here, Vapor there, vapor everywhere.
Just what we need, a maddened herd of Dong Farmers raging around demanding their gone yuangs.
What exactly is a dong farmer anyway? More like a cow or more like a head of lettuce?
"Dong-farmers in Salt Lake Pavilion mutual funds club" ... "sorry, I was picturing Whore Island"
China and Dow down today, let's see how Janet handles it tomorrow.
Simple equation: you can't fight the FED, but the FED cannot fight China.
DEL
Yeh, but the SQUID can sell toxic assets to all the chinese 'rich' and cause a failure of trust,
Maybe the FED which is just a SQUID-TOOL, can't fuck CHINA, but you can be sure the SQUID has other tools up their ass.
SQUID = GOLDMAN-SACH, aka right-wing zionism, e.g. NAZISM
Yen you about?
Got a FX heat map for you http://pdf.reuters.com/pdfnews/pdfnews.asp?i=43059c3bf0e37541&u=2014_01_...
If you can, look at the AUD!!!
Meltdown
Depends how big this bank is - Apparently, there are a few of these rural banks around. Probably like... credit unions.
Ni hao Bitchcakes..
Silver is now priced too high in Canada. It's 25.37 to 26.00 USD per Maple plus a 5 dollar fee and then it's another 13% for the currency exchange charge. The 5 dollar fee is puzzling me and I understand there needs to be a broker fee and a transport fee, which is also 5 dollars plus another dollar per coin. I thin the bank don't want me to buy silver and gold with my savings. We're hooped and the dollar will soon be at 85 cents US. I may put the other half of my savings into my mattress instead of leaving it in my zero percent savings account.
Do you have local numismatic shops?
Becoming a regular customer is your best bet.
I stopped trusting banks, currencies, 401k's and the govenments propping them up years ago. I now trust in a zero debt sustainable lifestyle and cold hard cash. I when I write cold I mean it. It's five below zero here and my money gets friggin ice cold.