Isaac and Bless Boahen saved for months to fund her economics doctorate, but when the time came to cash in the investment, they were left empty handed.
The couple are among at least 70,000 investors who have become collateral damage from a cleanup of Ghana’s banking industry. The crackdown, which reduced the number of lenders by a third and saw the closure of 23 savings and loans companies, also triggered a run on fund managers, who couldn’t sell their holdings fast enough to meet demand.
That’s tying up as much as 9 billion cedis ($1.6 billion) of investments, more than a third of the 25 billion cedis in assets that private fund managers oversee for retail and institutional investors.
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Update: "Horror" In Ghana As A Third Of Banks Shutter, Sparking Unprecedented Bank Run (Zero Hedge)
WNU Editor: A bank run is a sight that you do not want to see. I saw it happen in Moscow in 1992, and the look on people's faces when they realized that they have lost their life savings is a sight that you will never forget.
5 comments:
WNU, interesting.. can you provide more detail? what was it like? what did people do?
This is unfortunate. Ghana is one of the more stable, peaceful nations unlike Sierra Leone, Liberia, Nigeria or others.
The beginning of a rising tide?
Top ten African nations; largest Chinese debt.
https://www.africanexponent.com/post/9183-here-are-the-top-ten-countries-in-africa-bearing-the-largest-chinese-debt
I think this country should take a large step back in time and reinstate the legislation that kept bankers out of certain business activities, and their hands off depositor's funds to fund those activities. The Glass Steagall Act of 1932, 1933.
The bankers will not like this as they lobbied against it, prevailed in 1999, and this led to the tech bubble of 2000 and the housing bubble we just went through not too long ago. The blindness of the Federal Reserve in both speculative manias is total. And we paid.
It appears the Russian citizens didn't have depositor insurance as we do to a limited extent in this country and paid the price along with the country's economy, much of it landing in the hands of the likes of Putin and friends.
Just remember BB Bernanke; Blind Ben Bernanke, who famously said What housing bubble?. I don't see a bubble just before it began. BB has a nice beard but he, like Greenspan, can't pass the soup test. What is that you ask? Well, if soup was raining from the sky would you step out your door with a knife in your hand or a spoon?
These people are running the show via the Federal Reserve. It's stated goal is to degrade the purchasing power of your money 2%.
Here's a link that may help a bit, Foreign Affairs, January February, 2014, pages 179,180. "Blind Oracle" is the commentary.
That's it. Time to change the typewriter's ribbon.
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