There Is A Run On Chinese Banks

Images of large lines and demonstrations at Chinese banks in recent weeks.  

Asia Markets: There’s a run on Chinese banks and it’s being ignored by the world 

In the anatomy of an economic crisis, a bank run is the point of no return. 

Bank runs occur when people scramble to withdraw cash from banks in fear of collapse. In the worst cases, banks’ liquid cash reserves are exhausted, not everyone gets their money and the bank defaults. 

It’s a grim scenario which, fortunately, has occurred rarely in history. 

The most significant bank runs in the United States took place during the 1930’s Great Depression. More recently, there were runs on numerous U.S. banks during the Financial Crisis in 2008. 

In Asia, bank runs have also been rare. A run on Japanese banks in 1927 led to the collapse of dozens of institutions across the country. There was a banking crisis in Myanmar in 2003 which the country has never really fully recovered from. 

But perhaps since the Great Depression, none has been as significant compared to what is seemingly unfolding in China right now.  

Read more ....  

Update #1: China’s bank runs highlight abuse among small-bank shareholders, despite crackdown (SCMP) 

Update #2: China’s bank run is the biggest threat to markets right now. Get ready for it to hit the MSM. (Investment Watch)  

WNU Editor: This bank run is for the time being limited. But this can change very quickly. 

Update #3: Oh oh .... Chinese Banks Freeze Billions In Deposits: Officials Use Health QR Code To Bar Protestors (Zero Hedge).