Although the banking problems in China have been ongoing for several weeks, I believe bank runs in the United States will happen quickly. Not even the failure of Obamacare will be able to cover up the collapse of the US dollar.
David DeGerolamo
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.
