Tag Archive: Solvency


What A Bank Run In China Looks Like: Hundreds Rush To Banks Following Solvency Rumors

 

People gather in front of a branch of Jiangsu Sheyang Rural Commercial Bank, in Yancheng

 

 

” Curious what the real, and not pre-spun for public consumption, sentiment on the ground is in a China (where the housing bubble has already popped and the severe contraction in credit is forcing the ultra wealthy to luxury real estate in places like Hong Kong) from the perspective of the common man? The photo below, which shows hundreds of people rushing today to withdraw money from branches of two small Chinese banks after rumors spread about solvency at one of them, are sufficiently informative about just how jittery ordinary Chinese have become in recent days, and reflect the growing anxiety among investors as regulators signal greater tolerance for credit defaults.

 

Reuters explains:

 

  Domestic media reported, and a local official confirmed, that ordinary depositors swarmed a branch of Jiangsu Sheyang Rural Commercial Bank in Yancheng in economically troubled Jiangsu province on Monday. The semi-official China News Service quoted the bank’s chairman, Zang Zhengzhi, as saying it would ensure payments to all the depositors. The report did not say how the rumour originated.

 

  Chen Dequn, a resident in Yandong, just outside Yancheng, said she saw a crowd of about 70 to 80 people gathering in a branch of Sheyang Rural Commercial Bank in her town on Tuesday.”

 

ZeroHedge has more

 

 

 

 

 

 

 

 

The Heritage Foundation

 

    Total US Government unfunded liabilities are estimated to be between $195 Trillion as stated above and $238 Trillion , not including another unfunded liability of $4 Trillion that belongs to the individual states .

 

 

 

 

 

 

 

 

General Electric, Google And Microsoft Are Three Of The Nine S&P 500 Companies That Currently Have More Cash-On-Hand Than The U.S. Government

 

Poorhouse: The U.S. government currently has less money than nine S&P 500 companies

 

 

 

” It was just a few short years ago when the United States government was forced to bailout the auto industry, and now the tables have turned – the United States government currently has less cash on hand than at least one automaker, as well as eight other Standard & Poor’s 500 companies.

As politicians in Washington D.C. continue their seemingly endless debate on whether to raise the country’s debt ceiling (the amount of debt lawmakers authorize the Treasury to enter into), the U.S. is running out of money to pay the bills it’s already incurred.

At the moment, the Treasury has only $32 billion in its operating accounts. In contrast, General Electric currently has nearly three times that amount of accessible cash – currently, GE has more than $88 billion in cash-on-hand.

According to a graph created by QZ.com, GE tops the list of companies with more moulah than the U.S. government. Also on that list is Microsoft with $77 billion, Google with nearly $55 billion and Cisco with $50 billion.

Ford also made the list with $36 billion (Ford is one of the few domestic automakers that did not accept bailout money).

General Motors – which received nearly $50 billion in bailout cash from the U.S. government starting in 2008 – now trails the federal government in cash-on-hand by a mere $3 billion (GM currently has $27 billion in its coffers).”

    There should be no surprise that GE is flush with cash given that they pay next to no taxes . The best news is that Ford , which took no bailout money from the taxpayers is doing so well . GM on the other hand , still owes the taxpayers a bundle and that doesn’t take into account the value of the lost investments of bond holders screwed by Obama to placate his union cronies during the bankruptcy .