What just happened in a small rural town in eastern China should raise every warning flag here in the United States.
A man innocently walked into his bank in Yancheng, a city in Sheyang County, and asked to withdraw the Chinese equivalent of $32,200.
Not an outlandish request, right?
Well, the bank refused.
Within seconds, news had gone viral.
Fearing the worst, depositors believed that the bank had run out of money.
Minutes later, hundreds of customers were beating on the doors, demanding cash.
Despite assurances from regulators and the central bank that their money was safe, a full-scale run on the bank lasted three days!
Well, here’s where it gets scary…
Don’t think it could happen here?
In the coming days, you’ll be hearing a lot of negative news concerning banks in the United States.
You’ll hear that the FDIC doesn’t have enough money to insure your deposits.
You’ll hear that one of the major banks will soon fail.
You’ll hear that Citigroup (C) is behaving very strangely.
All of this (and more) will soon come to light, I assure you.
But first, let’s begin with international banking expert, Martin Hutchinson.
Martin, a Harvard MBA, spent 25 years working inside the global banking system from London to New York and back again. In the 1990s, he played a key role in establishing the debt markets in Croatia.
In my recent conversation with Martin, he revealed which two major banks are in the most trouble.
If you have money on deposit with these banks, I urge you to listen very carefully.
MUST-SEE: Trump’s Financial Disclosure Statement
This could be the biggest Obama “scandal” EVER…
It has to do with a secret that he and the Pentagon kept hidden at 9800 Savage Rd., Fort Meade, Maryland, for his ENTIRE presidency.
You won’t want to miss THIS.
The CIA spends billions of dollars to keep scandalous stories under wraps. So we wouldn’t be surprised if they wanted this page taken down immediately.
Click here for the shocking truth.
Onward and Upward,
Founder, Wall Street Daily
Breaking News From the Wall Street Daily Universe
Margin Debt Rolling Over
After spiking for months, margin debt declined by more than $15 billion in March. At the same time, investors pulled $15 billion out of the market – for a difference of $30 billion. While economists disagree on the effects of margin spikes on the stock market, most are in general agreement that margin reversals matter more than the spikes themselves. February 2014 saw the highest level of margin in history when it hit $465.7 billion – 22% above the prior all-time record in July 2007. Each of the previous margin highs in 2000 and 2007 was met with a significant decline of 10% or more over the ensuing period. Evidence is accumulating that a repeat may be closer than many investors believe, since in each previous decline, momentum stocks were the first to go.
China Continues to Contract
For the sixth consecutive month, China’s HSBC Manufacturing PMI missed expectations. April’s reading of 48.1 is a slight increase over the March reading of 48.0, but is the fourth consecutive month of contraction for China’s broad-based HSBC Manufacturing PMI (a reading under 50 shows contraction). This makes the current streak the longest consecutive contraction since October 2012, and is indicative of more than just a weather-related slowdown for China’s biggest customer – the United States. Adding to these concerns is other data showing home sales in China falling a stunning 47% year over year! These reports provide definitive evidence of a stagnant global economy at a time of record-high stock prices in the United States.
Is Weather to Blame for Low Inflation Numbers?
The latest read from the MIT Billion Prices Index shows annual price inflation at 4.4%, well above the Bureau of Labor Statistics data of 1.5%. Some economists believe the BLS data isn’t properly accounting for the harsh winter in making its calculations for inflation. The MIT Index reports that Q4 2013 and Q1 2014 experienced harsh winter conditions, which pushed consumers to make online purchases more than brick-and-mortar purchases. Due to a decrease in foot traffic at traditional retailers, businesses discounted their inventory to makes sales. Online retailers had no such issue, and were able to pass higher prices to consumers successfully. If the MIT Index is correct, it suggests that overall price inflation is getting ready to accelerate, something the Fed will have trouble containing.