Quote:
Originally Posted by John21
That's a big deal for free-market economies but not so much with command economies/police states. Main thing for the CCP is the housing they did get built along with the infrastructure, manufacturing/industrial, tech, military, etc.
Yeah, I did not think about what good it does for the counrtry in the long run, I was more thinking of the poor people that are in trouble now. But I think you are right there, it is probably good for the country in a weird way.
That might be similar to what is happening in the USA, L.A. now, they built social housing for 850k a unit. Thats not good for the many homeless people for which is was intended for or supposedly intented, but it is good in the long run for the state. They not only built units for 850k from what I understood, they also come with great infrastructure.
This is what I mean that goes along with the crises. People cant withdraw money from the bank now.
"Bank customers demanding their money back staged China’s largest protest in years. The violent episode is the ‘tip of the iceberg’ of China’s looming banking crisis
SinoInsider, a U.S.-based risk consultancy, concurs. The group wrote last week that the problems in Henan are just the “tip of the iceberg of serious systemic and financial risks with small- and medium-sized banks in China.”
SinoInsider explained that other banks could soon face “similar problems” due to the “financial contagion from Evergrande’s debt crisis.”
Since last year, China’s government has targeted Evergrande, the bloated property developer, in a broader crackdown on property speculation and unsustainable levels of debt in the real estate sector
"
Henan bank protests
The banking problems in Henan first emerged in April, when customers of the New Oriental Country Bank of Kaifeng, Zhecheng Huanghuai Community Bank, Shangcai Huimin County Bank, and Yuzhou Xin Min Sheng Village Bank discovered that they could not withdraw their funds from local banks. Thousands of depositors made the run on the banks after the government arrested Sun Zhengfu, the majority shareholder in “several of the banks,” for “serious financial crimes,” according to
Chinese media.
After bank depositors
complained to local media, China’s banking regulator announced an investigation into the banks in late April. But after weeks of still being unable to access their money, bank customers began to
protest at local banks and government offices.
https://fortune.com/2022/07/12/bank-...anking-crisis/
Last edited by washoe; 07-31-2022 at 08:29 PM.