Economic News

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🎁 —> https://www.wsj.com/finance/regulat...3?st=tMqNiz&reflink=desktopwebshare_permalink

Suspicious Futurama GIF

“… Most of the new applications are for national trust charters. Trust banks differ from full banks in that they generally cannot take deposits or make loans. Instead, trusts charge fees for the safekeeping of customer assets. Since they don’t take deposits, they typically aren’t insured like full banks.

… Banking lobby groups argue that approving the flood of applications could threaten the stability of the financial system. They say companies such as Ripple want to compete for banks’ customers without shouldering the same regulatory oversight, such as stringent capital requirements. Other critics of looser regulation point out that since the 2008-09 financial crisis, regulators have been highly restrictive about who could launch a bank and what banks can do—for good reason, they say.

… BPI said approval of the application from Coinbase, a crypto exchange, “could significantly increase risks to the U.S. financial system.”

Faryar Shirzad, Coinbase’s chief policy officer, dismissed BPI’s concerns, saying the group was just trying to protect banks’ business interests.

… The fight over chartering is tied in part to deeper anxieties among banks about stablecoins. If stablecoins become popular with consumers, major retailers could use them to provide their own payment methods or other banking services. That could open the door to cutting out banks and credit-card companies.

Amazon and Walmart are among a number of large companies, including airlines, that were exploring whether to issue their own stablecoins, The Wall Street Journal previously reported….”
 
nycfan said:


🎁 —> https://www.wsj.com/finance/regulat...3?st=tMqNiz&reflink=desktopwebshare_permalink

Suspicious Futurama GIF

“… Most of the new applications are for national trust charters. Trust banks differ from full banks in that they generally cannot take deposits or make loans. Instead, trusts charge fees for the safekeeping of customer assets. Since they don’t take deposits, they typically aren’t insured like full banks.

… Banking lobby groups argue that approving the flood of applications could threaten the stability of the financial system. They say companies such as Ripple want to compete for banks’ customers without shouldering the same regulatory oversight, such as stringent capital requirements. Other critics of looser regulation point out that since the 2008-09 financial crisis, regulators have been highly restrictive about who could launch a bank and what banks can do—for good reason, they say.

… BPI said approval of the application from Coinbase, a crypto exchange, “could significantly increase risks to the U.S. financial system.”

Faryar Shirzad, Coinbase’s chief policy officer, dismissed BPI’s concerns, saying the group was just trying to protect banks’ business interests.

… The fight over chartering is tied in part to deeper anxieties among banks about stablecoins. If stablecoins become popular with consumers, major retailers could use them to provide their own payment methods or other banking services. That could open the door to cutting out banks and credit-card companies.

Amazon and Walmart are among a number of large companies, including airlines, that were exploring whether to issue their own stablecoins, The Wall Street Journal previously reported….”
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I have no doubt the banking industry is looking out for itself first and foremost, but I am much more aligned with a much more cautious/conservative approach here. For one thing, I saw first hand how sloppy the less regulated fintechs could be during PPP and it scared the hell out of me.

This could end up being some super crazy economic engine of the future and worry worts like me will be laughed at for resisting. But I very much worry that we are hurtling into the destruction of our own currency as the world currency and with it an immense source of economic power. And my related worry is that currency will be controlled by immense corporations instead, driving people into a kind of indentured servitude that looks a lot like when big corporations paid employees with company issued scrip that could only be used to rent company owned houses and buy groceries and materials from company stores.

You work at Amazon? You get paid in AmazonCoins that only Amazon accepts, except maybe they can be traded at a discount for some WalMartCoins or other more generic crypto?

Of course I’m conservative about all this because I am finally on the cusp (well 3-4 years) away from retiring and I don’t want to see my lifetime of savings shrivel in value. So maybe that is making me too paranoid about how I am seeing this rush to platform alternative currencies controlled by tech bros and corporations and otherwise potentially radically alter our banking system.

But I do fear that an unleashed combination of greed, disdain for expertise, ineptitude, arrogance and stupidity is hurtling us toward economic catastrophe… move fast and break things is no way to run a government or the world’s leading financial system. I saw DOGE in action to start this Administration and the actions and outcomes were not encouraging. Now a lot of the same people want to burn down the financial system and replace national currency with corporate crypto answerable to no government or regulation.
 
WaynetheDrain said:
Yes, JD. It's going to take so long, that it won't happen until a Democrat is POTUS. Which is usually the case.
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Sleepy Joe left Trump a golden economy as did Obama.

inherited a disaster = a growth economy, millions of jobs created , 3% inflation and trending lower

it will take a long time to get the economy growing again= when we get through, it will take having a Democrat POTUS in 2029 to clean up the mess we left behind.
 
8992Tiger said:
"Fix it on Day 1"
"Soon"
"Next year"
"A long time"

My first instinct is to ask, "How dumb do you think I am?" Then I remember that I am not their audience, and a good portion of their audience is dumb.
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Given that these are the same folks (or types of folks) who said in his first term that they would have a great alternative to Obamacare in about two weeks, this really doesn't surprise me. And we all know that in MAGA World everything that goes wrong, anywhere, is all the Democrat's fault, especially if it's Joe Biden or Obama. So this latest tactic isn't surprising, although I doubt it will work, even with some of his base, who are starting to lose their jobs and farms and are really starting to struggle under Dear Leader's "winning" economy.

I do think what's interesting about Vance's remarks is that it reveals that even Trumpers know the economy is getting worse and so they're desperately just blaming it all on the Democrats.
 


“… Despite stalling somewhat in the last few weeks, Nvidia’s shares are still up 41% so far in 2025, outperforming most of its Magnificent 7 cohorts, except for Alphabet. In pre-market trading Monday morning, Nvidia shares were 0.90% higher.…”
 
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