For the financial industry, the most effective way to smash this piece of cake is to destroy its credit system.

People are willing to deposit their money in banks because they believe banks are the safest.

They believe that as long as the country still exists, there will be no shortage of money in the bank.

But there are exceptions. In some special periods, in rural areas where information is relatively limited, people are often misled by rumors.

When Luo Xiu was a child, rumors spread in his hometown that the bank was about to go bankrupt, causing panic among the people.

At first, only a small number of people believed that the bank would go bankrupt, and these people ran to the bank to withdraw their money.

However, there was not much cash stored in rural banks. This group of people withdrew all the money from several banks in the town in an instant, leaving people behind unable to withdraw money.

This makes more people believe that the bank may really be out of money.

So more people flocked to the bank.

Rural banks have a limited manpower and cannot cope with so many people withdrawing cash together, and the quality of relevant management personnel is not high enough.

Their response was to simply shut down the business and prevent people from withdrawing money.

At this point, the rumors of bank failure were completely confirmed.

People began to run to neighboring towns to withdraw money, and the rumors quickly spread to surrounding towns, causing banks in surrounding towns to be emptied of all cash.

However, compared to the whole country, false rumors in a small place can be easily extinguished.

Carloads of cash were escorted by armed police and paraded through the market.

You can withdraw as much as you want without fear of running out of money.

People took their money home, fearing it would be stolen, so they slept with each other in their arms every day.

After a while, the money was sent back one by one.

Now, people are willing to deposit money into the granary, not only because of higher interest rates, but also based on trust.

This trust was also built step by step. I first deposited ten thousand, then twenty thousand, and finally deposited my entire wealth.

Deposit and withdraw anytime, and your account will be credited instantly.

In this way, people's trust was built step by step.

Everything was going well at first, more and more people were depositing money, and the plate was getting bigger and bigger.

The funds stored in Granary even surpass those of many small banks, and it can be said to be more trustworthy than these small banks.

However, before everyone had time to celebrate, some so-called experts began to appear on the Internet to educate the public about the risks of granaries.

A bunch of information popped up out of nowhere saying that the money stored in the granary may not be returned.

"When you store your money in the granary, you put it into Luo Xiu's pocket."

"Have you ever heard of a Ponzi scheme? Granary is a typical Ponzi scheme. It has no profit itself, but uses the money of new investors to pay interest to old investors, making it look like it is very profitable.

Make money and let more people invest their money.”

"That's right. The first person to run away does make money, but people's greed will make you think that you are not the last one, and the result will be bankruptcy."

"You should run away quickly before he explodes. It will be too late."

"If this is not a Ponzi scheme, why is his interest rate so much higher than that of the bank?"

…

Not all of these rumors are being spread by people who want to crash the market.

Many people who don't have much money themselves become jealous after seeing people around them depositing money into granaries.

If you don't have money, you will naturally have a disdain for others' kindness.

As a result, they firmly believed that the granary was a scam, and that anyone who saved money into the granary would definitely lose everything.

So the rumors began to spread on the Internet, fueled by some well-intentioned people and blindly followed by more ignorant people.

…

At the rice ball meeting.

Li Shan slammed a stack of materials on the table and said angrily: "Are these people fools? They actually said that our granary is a Ponzi scheme. How do we look like a Ponzi scheme?"

"That is, if there is no profit of 20% per month or more than 300% per year, do you have the nerve to call it a Ponzi scheme?"

"If you think about it for a moment and use your brain, you will know that this is impossible."

"We have clearly written down the flow of funds, why don't they just take a glance at it?"

…

"Ahem..." Luo Xiu interrupted them and said seriously, "Complaining can't solve any problems. I came to you to hear your solutions, not your complaints."

Most users on the Internet are ordinary people who don’t know much about various financial knowledge.

They also don't have much time to study what monetary funds are and what a Ponzi scheme is.

And even if they don’t really believe these rumors in their hearts, what if?

What if I really can’t get the money back?

Moreover, although the interest rate in the granary is a little higher than that of the bank, it is not much higher, and it is far from a level that makes them willing to take risks.

The final result may be: I would rather believe that something exists than something that doesn’t exist.

People withdraw cash from the granary one after another.

"What's the ratio of deposits and cash withdrawals in Granary recently?" Luo Xiu asked.

"Since the establishment of our granary, the amount of deposits has always been much greater than the amount of withdrawals. But starting from the day before yesterday, the situation has been reversed. As of yesterday, the amount of withdrawals was even twice the amount of deposits."

In the conference room, everyone became quiet when they heard this value.

The most worrying thing has come.

In addition to higher interest rates than banks, the most attractive feature of Granary is its flexible deposits and withdrawals.

You can also get good interest rates by depositing money for a fixed term or buying bonds, but users need to mature before they can withdraw the money.

And storing money in a granary is like a life span. You can use the money inside for shopping or withdraw it directly at any time.

But this is just an illusion seen by users.

In fact, in order to obtain high interest rates from banks, Granary will divide the money in it into several parts.

Part of the fixed deposit is for one year, part of the fixed deposit is for half a year, and the rest is deposited for three months, one month...

Keep only a small amount in your checking account.

As long as users do not make large-scale cash withdrawals, they can enjoy the flexibility of current savings and the high interest rates of regular savings at the same time.

If a large number of users withdraw cash and all the flexible funds in their accounts are withdrawn, there will be a phenomenon where there will be no money to withdraw.

The money is actually safe, it's just that it's in the bank and it hasn't expired yet, so it can't be taken out.

But the user only knows that he can’t get his money out.

A run will occur at this time.

The entire credit system of the granary will collapse due to a run.

Users no longer trust Granary and are asking for cash withdrawals.

A run can cause a bank to fail and even affect the entire banking industry, not to mention a small granary.

To deal with the risk of a run, township banks only need to escort truckloads of cash from the city and swagger through the market, letting the public see with their own eyes that the banks are full of money.
Chapter completed!