A Bank Run in the Us Can Be Avoided, Although If the Ongoing – and Quite Poetic –

toilet paper run is any indication, US depositors will soon shift their attention to that other “paper”…what An American Bank Run Would Look Like, Once a bank run gets going, even a healthy bank can have a hard time stopping it because just giving everyone their money right then and there usually isn’t an option. Bank run (bank panic) A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the charteringagency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business. Technically the title of this post is wrong: the truth is that nobody could possibly know or predict what a bank run would look like in detail suffice to say that it would have terminal and devastating results on the global economy. One needs only remember what happened when the Reserve Fund broke the buck and the $3 billion money market industry was at risk of unwinding (for those who do not, Paul Kanjorski does a good summary here). What we…

Read More

The Trouble Has Just Begun, Second Bank Run In Two Weeks In China

Coming to America Soon, When Dealing with a Collapsing Ponzi Scheme, Only Those Who Pull Their Money First Stand to Recover Anything ….FDIC Failed Bank List USA 2019… three weeks ago we reported that China’s Henan Yichuan Rural Commercial Bank, just outside the central Chinese city of Luoyang, was the latest small-to-medium Chinese bank to suffer a vicious bank run as long lines of depositors filled out its branches demanding their money, amid a rumor that the bank was going under. The bank was at least the fourth to be on the verge of collapse after recent prior nationalizations of Baoshang Bank, Bank of Jinzhou, and most recently, China’s,s Heng Feng Bank. Now yet another Chinese bank has found itself scrambling to prevent a collapse: Yingkou Coastal Bank was forced to stack bundles of yuan notes high behind the counters of…

Read More

Chinese Banks On Verge Of Collapse After Sudden Bank Run, Birth Pains

Coming to America Soon, When Dealing with a Collapsing Ponzi Scheme, Only Those Who Pull Their Money First Stand to Recover Anything ….FDIC Failed Bank List USA 2019 First, it was Baoshang Bank, then it was Bank of Jinzhou, then, two months ago, China’s Heng Feng Bank with 1.4 trillion yuan in assets, quietly failed and was just as quietly nationalized. Today, a fourth prominent Chinese bank was on the verge of collapse under the weight of its bad loans, only this time the failure was far less quiet, as depositors of the rural lender swarmed the bank’s retail outlets, demanding their money in an angry demonstration of what Beijing is terrified of the most: a bank run. Local business leaders, political cadres and banking executives rallied Thursday at the main branch of Henan Yichuan Rural Commercial Bank, just outside the central Chinese city…

Read More

Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day, Birth Pains

A bank run occurs when a large number of people withdraw their money from a bank because they believe the bank may cease to function in the near future. Paul, too, described the Tribulation as birth pains. First Thessalonians 5:3 says, “While people are saying, ‘Peace and safety,’ destruction will come on them suddenly, as labor pains on a pregnant woman, and they will not escape.” This event follows the Rapture and the removal of the Church, in 4:13-18. In 5:9, Paul reemphasizes the absence of the Church from this time period by saying, “For God has not destined us for wrath, but for obtaining salvation through our Lord Jesus Christ.” The wrath spoken of here is God’s judgment on the unbelieving world and His discipline of Israel during the Tribulation. There is a reason James Simons’ RenTec is the world’s best-performing…

Read More