Henan Bank decides to use citizens money for investment

[dothebeats]

Banks do this all the time, except that they can still give out account holders' withdrawal since they have some stash of cash in them. Either this particular bank doesn't have cash reserves or they really put communism to play. China is known for doing these kinds of stuff for years, and it no longer surprise me that it is still happening today. What's amazing is that more and more Chinese are kind of resisting these kinds of acts from the government, something that hasn't been done since the Tiananmen Square massacre.

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[DrBeer]

Now we are on the verge of very unexpected events that will follow from China. No, it will obviously not be 2022, but definitely 2023/2024. Now the state, or rather the "celestials", are trying their best to hide, or at least disguise the growing and inevitable, powerful crisis of the Chinese economy. Yes, terrible consequences are not yet visible, so far it is possible to "hide" them, such as "investing other people's deposits, without coordination with the owners of the funds," and some others. But unfortunately, the flywheel of the crisis is gaining momentum every day, and when there are not enough resources to hide problems, this flywheel will simply crush what was once considered the most powerful economy in the world.

I'll just talk about a few signs that are sure to be noticeable. Such signs are characteristic of totalitarian regimes, and only them, because. they just have no other choice.
1. Increasing the capacities of the military-industrial complex
2. The total militarization of society, and most likely under the pretext "we have an enemy." Here, the truth is, the Chinese government will have to rack their brains to come up with a "realistic" enemy, because. the people of China are not North Korean sheep.
3. Massive legislative and enforcement decisions restricting freedoms - from the media to the availability of finance, and a rather sharp impoverishment of the majority of the population.

...and then the tension inside China will rise at a wild speed, the destruction of global mega-companies, the fall in industrial production, and much more... No, I'm not happy, because. this will lead to another global economic crisis, but here everything will be more complicated than the story about, for example, bubbles with dot-coms. Here the world economy will have to rebuild globally.

[TheNineClub]

I don't see this bank doing anything diferent than any other bank or investment fund. Situations like this happened in the 2008 crash and are happening now as well as spculations hit a brick wall. But you kinda alow the bank to do that if you use it's services. I know of cases of banks going under and the people that lost their money with them having to wait for 20 years to get something back.

[Cryptodebjoe]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.
 

I beg to differ Sir ive gone through a few materials on this and from the info ive gathered this is more of a fraudulent/embezzlement case than investment. According to a Marxist column KST 01/08/2022 the police had been on the hunt for Sun Zhenfu a former VP of Xuchang rural commercial bank which sponsors or controls about 5 subsidiary rural banks of which henan bank is included he was wanted for serious economic crimes which has affected  about 400000 depositors. The China Banking Regulatory Commision(CBRC) has stepped in to do some refund due to the massive protest. There are also speculations that the Chinese Communist Party has a hand in whats happening because during this protest the Covid-19 health code of all the rural depositors turned red suddenly. and when this happens the person is being banned from public places... Although the Communist have come out to arrest those who tampered on the health code of the protesters none of them has been prosecuted. so its assumed that the Government has an idea of whats going on

[cheezcarls]

I just feel for those consumers who have their funds stuck in that bank. Same case with Celsius and also the latest SOL hack. We don’t just simply put all of our eggs in one basket. This is why despite the reputation of the bank, I don’t trust them when it comes to storing my savings and assets. It’s better to store them into something which we have full control and custody like the hardware wallet.

[Sang Prabu]

This happens to almost all banks, they invest with consumer money, they provide bank interest 5% per year, but get bank interest more than 15% per year from borrowers, this is what makes many banks immediately go bankrupt when customers take all the money.

[DrBeer]

It's not a scam issue or anything like that. These are the first echoes of the approaching global crisis in China. We have already heard about major bankruptcies in the Chinese construction business. These are the harbingers... Construction companies and banks have fallen into the trap of inflating the construction bubble. They already have hundreds of billions of dollars worth of non-performing liabilities. The state will not be able to support them either, and everyone is well aware that soon enough this will bear its "fruits". At first, the stoppage of related industries, of a global nature - the production of concrete, building metal, and other things. This will lead to significant unemployment. And also a huge number of dissatisfied people who invested money in "their dream" - people will find themselves without money and without housing. This will lead to an increase in internal stress.
And then on the rise: unemployment => drop in living standards => inflation => fall in industrial production => and in a circle to the point of "explosion".

[Hydrogen]

I'll make a prediction. Events of the next 6 to 12+ months will shine a new light on this. In a way that puts events into perspective and is intuitive for everyone.

At the moment, people are surprised by this and don't understand why this happened. But there is a reason for it. Which will become obvious later. It can be deduced from recent events and proposals that have been put on the table.

Isn't it odd that people promote savings in banks and investment fiat in an era where events like this are occurring in henan and around the world. Bitcoin maximalist. Or bank / fiat maximalist. Most of the discussion is defined by extreme polar opposites. Where we appear to lack a middle ground between the two.

[dezoel]

Just like that? I think there's more to it because it's kinda impossible for them to just use the money of their customers without any twist like the money will be returned bigger but before they did it, better if they do some announcements first if their customers will agree to it or not, as some won't and will choose to withdraw their money and leave that bank because they are afraid of what can happen to their money soon.

Bitcoin on this country is also banned, I think is the reason why people there have no choice but to put their money in banks even if they know that there are risks that entails with it although there's also a risk bitcoin because of its volatility but what's good with it is that they have a full control of their money.

[Viscore]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.
 

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In a bid to scare protesters away, People's Liberation Army tanks were put in front of the banks as the protesters were reluctant to leave the bank premises, furious that the bank had decided to turn their savings to "government investment".
 The use of tanks is quite similar to the case of the June 4, 1984 incidence at Tiananwen Square where students where killed while protesting for better freedom and democracy.
With such a big issue trailing the government and banks, it would be safe to say that they have nothing to offer and are no longer trustworthy and once this is lost, citizens tend to look for other sources.
 
 This was probably what Satoshi saw and decided to create Bitcoin, because the integrity of banks will be compromised as technology evolved and they  will try to cover all their tracks.
 With China not in support of Bitcoin hence individuals would have switched over to it, so how do they manage to guard against such an incidence repeating itself? https://www.india.com/business/video-china-deploys-tanks-after-top-bank-declares-peoples-money-investment-products-5526988/

Well, knowing China, they are known to be great manipulator most especially with their own citizens. This is the reason why centralized banks should not be considered as the best place to put our hard-earned money because it will be used by them for their own motives in the long run. This Henan Bank should serve as an eye opener that banks will mostly create the same fate with this. As much as possible, we should have our own wallet with bitcoin because that's the only solution not to fall for the traps put in the banks.

[el kaka22]

China is having a ton of investment problems for the past few years. They have grown further then they should be believing that the money would keep coming in. But as we have seen, the world became a lot less financially free, meaning that the world didn't want to spend money on buying stuff from China like it used to, and china didn't get richer, and all those houses built to make the nation a better place, ended up not getting sold at all.

In the end, banks would have to switch money around in order to survive, maybe it was illegal, maybe it wasn't but it was unethical, in the end they have decided that it was the only way and they went for it, which caused a lot of trouble.

[Strongkored]

I just feel for those consumers who have their funds stuck in that bank. Same case with Celsius and also the latest SOL hack. We don’t just simply put all of our eggs in one basket. This is why despite the reputation of the bank, I don’t trust them when it comes to storing my savings and assets. It’s better to store them into something which we have full control and custody like the hardware wallet.

What happened in Henan could not be fully compared to what happened to Celsius or other hack crypto stories because traditional banks were institutions that were set by the state and the state should be able to protect customers correctly, but unfortunately it did not happen in China and almost It is also certain that in many countries where the government is very dictatorial, most people will always consider the bank as a safe place to save money because it is a mindset that has been instilled long ago

[Smack That Ace]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.
 

upload pictures free

In a bid to scare protesters away, People's Liberation Army tanks were put in front of the banks as the protesters were reluctant to leave the bank premises, furious that the bank had decided to turn their savings to "government investment".
 The use of tanks is quite similar to the case of the June 4, 1984 incidence at Tiananwen Square where students where killed while protesting for better freedom and democracy.
With such a big issue trailing the government and banks, it would be safe to say that they have nothing to offer and are no longer trustworthy and once this is lost, citizens tend to look for other sources.
 
 This was probably what Satoshi saw and decided to create Bitcoin, because the integrity of banks will be compromised as technology evolved and they  will try to cover all their tracks.
 With China not in support of Bitcoin hence individuals would have switched over to it, so how do they manage to guard against such an incidence repeating itself? https://www.india.com/business/video-china-deploys-tanks-after-top-bank-declares-peoples-money-investment-products-5526988/

Well, knowing China, they are known to be great manipulator most especially with their own citizens. This is the reason why centralized banks should not be considered as the best place to put our hard-earned money because it will be used by them for their own motives in the long run. This Henan Bank should serve as an eye opener that banks will mostly create the same fate with this. As much as possible, we should have our own wallet with bitcoin because that's the only solution not to fall for the traps put in the banks.

This has happened before and not just in China and it happens to banks all over the world. Banks are the only trust that people can trust, but unfortunately the bank is not the safest place. This is China and bitcoin is strictly prohibited here, people will have no way to store their wealth other than banks.

Bitcoin is the only solution for our wealth, hopefully bitcoin will soon get mass adoption so people can protect their own assets and no need for any centralized bank.

[Gyfts]

This is not uncommon at all. Banks will use the funds deposited by their clients in order to generate profit. Clients receive interest payments. I don't support these matters unless the clients are properly informed of the risks, but it's probably also true that the folks that deposit fiat into a bank are looking for stability, not investment returns.

The main issue I see here is that the banks and government in China are essentially one entity. Using funds for developmental purposes creates a conflict of interest. CCP is looking to expand their their country's reach thus if they were to put funds into projects that fail or get a negative ROI, the citizens are out of luck.

[justdimin]

This has happened before and not just in China and it happens to banks all over the world. Banks are the only trust that people can trust, but unfortunately the bank is not the safest place. This is China and bitcoin is strictly prohibited here, people will have no way to store their wealth other than banks.

Bitcoin is the only solution for our wealth, hopefully bitcoin will soon get mass adoption so people can protect their own assets and no need for any centralized bank.

What did people think when they invested their money into a savings account? Banks just charge late fees or something and pay from there? Loans are an investment, meaning even if banks didn't end up investing into stocks or anything, your savings account money is used to give someone else a loan and that loan is for 5% rate to pay back whereas your savings interest is 1% or less.

This means that the bank makes a profit by using your money to give others loans, and yes there are defaults but very little which means that they still make a profit just from that. But they find it not enough so they end up putting a good amount of money into stocks this way.

[freedomgo]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.

This is how most custodians of any assets make their money - they lend out your assets to others.

It's not limited to banking as it's done by most stock exchanges and billions too.


The tanks are probably more unique to China but a lot of countries have militarised police.

This is not just for Henan bank alone, but also practiced by a lot of centralized banks worldwide. You invest your money in them, and then they will use your money too to make more money for the bank and apparently for their own interest too. This has been happening ever since, but I think China make it worst. Not surprising why they always make it to ban bitcoin because once people will adopt it, it will eventually stop their own modus because people will not trust the bank anymore and will all shift to bitcoin.

[samcrypto]

This happens to almost all banks, they invest with consumer money, they provide bank interest 5% per year, but get bank interest more than 15% per year from borrowers, this is what makes many banks immediately go bankrupt when customers take all the money.

Banks are investing the money and its pretty normal but if you can’t access your money anymore then that is a big problem because banks should be more liquid and you should get your money any time you want especially if its just a savings account. Bank should not do this, the regulator should step in and ask the bank to bring bank the money of their clients, this is a red flag action for that bank, better to stay away if its still possible.

[chrisculanag]

This happens to almost all banks, they invest with consumer money, they provide bank interest 5% per year, but get bank interest more than 15% per year from borrowers, this is what makes many banks immediately go bankrupt when customers take all the money.

Banks are investing the money and its pretty normal but if you can’t access your money anymore then that is a big problem because banks should be more liquid and you should get your money any time you want especially if its just a savings account. Bank should not do this, the regulator should step in and ask the bank to bring bank the money of their clients, this is a red flag action for that bank, better to stay away if its still possible.

Very well said , that's a reality to all bank. They only use the money of the people to operate and earn a lot. The only things that can do to save our money is put  in our own vault. Less hassle and we can control it.

[crzy]

This happens to almost all banks, they invest with consumer money, they provide bank interest 5% per year, but get bank interest more than 15% per year from borrowers, this is what makes many banks immediately go bankrupt when customers take all the money.

Banks are investing the money and its pretty normal but if you can’t access your money anymore then that is a big problem because banks should be more liquid and you should get your money any time you want especially if its just a savings account. Bank should not do this, the regulator should step in and ask the bank to bring bank the money of their clients, this is a red flag action for that bank, better to stay away if its still possible.

Very well said , that's a reality to all bank. They only use the money of the people to operate and earn a lot. The only things that can do to save our money is put  in our own vault. Less hassle and we can control it.

Thought its not that safe but I will also support this one since the banks is just giving a small amount of interest if you put your money with them and beside, it takes a lot of requirements just to open an account. Anyway, if this kind of bank that will not allow you to get your money back since they reinvest it into something else, that’s a big red flag and I agree that their central bank should take actions to protect the consumer. Better to go for a much bigger bank, and put your money there but of course don’t expect too much interest from them.

[paxmao]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.

This is how most custodians of any assets make their money - they lend out your assets to others.

It's not limited to banking as it's done by most stock exchanges and billions too.


The tanks are probably more unique to China but a lot of countries have militarised police.

Yes and no. After the 2008 crisis, investment banking and commercial banking were separated, so yes, you can lend, but you cannot do whatever you want with it. Also, banks are limited in their lending and they have to pass certain tests (in US and EU) precisely to make sure they do not lend to the point that they cannot honour the deposits.

The situation as described is very clear: A bank has your funds, but you cannot withdraw them - that is in essence the definition of a bank going under (bankrupt). It does not matter if they say that it is going in "investment" or that is being used to save grannies from floods - you are able to get your money whenever you want from a typical account.

Now, the excuse of it being used for "government investment" does not make any sense. If it is used for "investment" then the depositaries should benefit from it. It is not usual to see the Chinese protesting, so there must be something really ugly going on.