Summary
Trump’s team is considering abolishing key banking regulators, including the FDIC and OCC, with plans to consolidate their functions under the Treasury Department.
Critics warn this could undermine public trust in banking, weaken deposit insurance protections, and risk another financial crisis.
The FDIC, established during the Great Depression, played a crucial role in managing the 2023 banking crisis.
Trump allies, backed by financial industry donors, are also targeting other consumer protections, reflecting sweeping deregulatory ambitions tied to Project 2025’s proposals.
Experts fear these moves could destabilize the economy.
No way this can backfire
The 2020’s are looking to end like the 1920’s.
Not a recession, but a massive depression.
Except, considering how globalized the world economy is today, it would cause a complete total economic collapse on a global scale. You thought the great depression in the 1920s was bad? You have no idea how bad it can really get.
It’s not just economic globalization, but the global ecosystem’s food chains are already starting to collapse thanks to climate change, and our factory farming systems are becoming increasingly prone to virulent diseases wiping out huge crops of both plants and animals. I wonder what happens when food prices skyrocket because half our food supply has been contaminated, and at the same time inflation explodes thanks to plain ol’ financial mismanagement
The 1920s depression was infamously global.
a complete total economic collapse on a global scale.
Of course it will all be peaceful, right, RIGHT?
massive depression
Wayyyyyyyyyyyyyyy ahead of the curve on this one.
You and me both, bud.
It’s gonna be baaaaad.
Trump (2 weeks after everything all the experts said would happen happens): Noun one knew how complicated banking is… my uncle, the MIT professor; huege brain was surprised this happened. An MIT professor didn’t think this could happen; speaking of things that happen, Batron… where is Batron? Where is, possibly, my “favorite” son? The crypto visionary. Let me tell you about the importance of crypto. Did you know this stuff is mined? Like from the earth? More valuable than water it is. Looking to back the usd by crypto and then by water. It’s free it just drops from the sky like “Bing, Bing Bing bing” might as well as be kaching!!
I fucking hate that what you wrote could be credibly said by him. I mean except how eloquently you put it lol
Wasn’t lack of regulation what caused the 2008 recession?
And supply-side-God willing, we can get back to there.
In case you didn’t know, this has been animated/narrated, too:
I had no idea and thanks for this! :)
Look, some of us are going to make the sacrifice to supply-side-God. We gotta do everything to help the rich get richer. Cause fuck us plebs.
Can’t you just smell the freedumb?
I think you misspelled “Poor people trying to live above their divinely ordained station!”
- American GOP and Finance Industry
Yes but American voters don’t give a shit.
They found a way to blame it all on the poorz. Oh, and POC.
Yes
Sort of. 2008 happened because new financial products called CDOs allowed shit loans to be turned into gold, and people insured that gold.
More regulation may have helped, but there was a very specific cause.
Yes, because the bankers made dumb deals for greedy profits. and then committed a lot of fraud.
I recommend the movie The Big Short (or the book its based on)
Of what I’ve read, regulation in the direction opposite from sane too.
They don’t care if they tank the dollar, it will make the assets in the Strategic Dogecoin Reserve that much more valuable.
Pretty sure the plan is to actively tank the dollar
The question is, how do you bet against the US Economy and for whatever selfish fuckhead of a plan they have.
As the person said below, move your currency out of the US dollar into something like gold or buy a house with a 30-year mortgage because you are basically shorting the dollar for a hard, tangible asset.
This assumes that you will have an income of something worth more than the US dollar to pay the mortgage with. If your income continues at the same amount of US$ then your mortgage payment will still cost you the same amount of income, regardless of how the global valuation of the US$ changes.
But the asset of the house itself would go up in value. I guess you do have to worry about the sales extortion when you go to sell it though. Which would not help very much. So I guess you’d end up at break even.
Well look, I’m not advocating for this coming government nor am I an economic expert. But in a vacuum one could impose tariffs on imported goods, tank the cost of labor in your own country, and force manufacturing back here, right? And in the long run, would be beneficial for local manufacturing instead of being so dependent on China. If it weren’t for the local oligarchy here I’d say it’s even a tough but fair plan for the economy. Knowing what we know, things will only get harder with no observable benefit for the working class as whatever improvement we manage to make will be sucked away by the ruling class. But the plan isn’t horseshit in a vacuum. Someone please feel free to tell me why I’m completely wrong as I’m not really speaking with too much conviction tbh
And in the long run, would be beneficial for local manufacturing instead of being so dependent on China…Knowing what we know, things will only get harder with no observable benefit for the working class
…and…
Someone please feel free to tell me why I’m completely wrong as I’m not really speaking with too much conviction tbh
Those tariffs would destroy our $1.95 trillion in exports from the USA because many of those are finished goods with input materials imported (and now tariffed to high heaven). source
Modern manufacturing doesn’t depend on hundreds of thousands of human bodies anymore. New manufacturing factories would be highly automated and only employ a tiny fraction of the now unemployed workforce to produce the same amount of goods as in years past.
“From 1960 to today, American steel mills have decreased from an average of 700,000 workers to just 83,000. And within the last 40 years, the productivity of labor has increased more than five times from approximately 10 man-hours per finished ton to under 2.” source
So we’re basically forfeiting a bunch of jobs related to and effected by procuring overseas input materials to gain a small fraction of manufacturing jobs? That just sounds like it will damage the economy and not bring it back up.
Exactly why everyone with a brain has been shouting that this is the worst possible idea.
Oh hell yeah, thats like 85% of things. I didnt know a brain was required to know that tbh with the sheer amount of visible foreign made items.
I believe this is what Milei is selling in Argentina. I believe your assessment is correct. They’re telling us that it will be hard in the short term, but it will be worth it in the long term. The thing is, they mean worth it for the owner class. Working class people will take the brunt of it and it will just stay awful.
In my home country (we all know the economy is gonna keep getting worse so we bet against it by default) we buy foreign currency (including ironically USD), gold, electronics or other tangible assets that hold their value.
electronics
Those hold value?
At least in my country sort of (besides new models of course), because they’re all imported. It might be different in the US.
What country is that? As far as I know, anything electronic here in the U.S. tends to drop like a rock in value pretty much right at purchase time (just like cars - driving it off the lot usually results in a huge depreciation). With maybe a few exceptions, like when people are snapping up a bunch of some new item that is in short supply and reselling it for more than MSRP.
Egypt. Electronics here are tarriffed to high hell if that matters.
Edit: Okay I should probably explain a bit more. In Egypt, because we import a lot of things (you can thank government mismanagement for this), the price of the Egyptian pound against foreign currency in general and the USD specifically controls the price of a lot of goods directly and literally everything indirectly. Therefore it’s usually a good idea to solidify your money in an asset whose price will rise with the USD. Usually you wanna buy USD, but that becomes less available day by day so some people bet on goods whose price will rise with the USD, like electronics (we have no domestic electronics makers) and gold. Rising foreign currency prices (well really falling EGP prices) are the driving force of inflation here so the fact that the USD itself will fall in value because of inflation doesn’t have much effect on the final calculation.
Move your currency out of USD.
Probably crypto, unfortunately.
Buy Euros. Keep them in a European Bank.
I wonder how this will help China in their efforts to get off the dollar…
Not gonna lie. If the FDIC goes, I withdraw immediately.
And do what? It’s literally not possible to live without a bank account any more. They’ve actively destroyed cash as a means of payment
What? Cash still works man, and probably will still work. They just made non-cash ways of spending money more convenient, which is why so many aren’t using cash anymore, but it won’t go anytime soon.
Or are you talking about something else I’m not thinking of?
To pay my rent I would have to take my paycheck physically to a bank, cash my check, use that cash to buy multiple money orders, and then mail those money orders. Keep in mind this has to be done early enough to be delivered before the 1st and that the bank is mostly open when I’m at work.
NYC Philly Denver San Francisco NJ DC
All these require businesses to accept cash. The only states where it was proposed and shut down was in red states; ND MS
“85% of sellers who accept cash and use the online payment processing service Square said they never plan to stop taking cash, according to Shelle Santana, an assistant professor at Harvard Business School who has been analyzing Square transaction data.”
Republicans don’t care about discriminating against unbanked people. Sounds like you probably live in a Republican hell hole
What point are you trying to make? Nothing you said addresses any of the barriers to using cash exclusively that I brought up. My landlord doesn’t live nearby so I can’t exactly just go hand him a massive wad of cash nor will my employer pay me in cash so I don’t have to get to a bank during business hours.
I live in California by the way.
You’re probably telling them something they’re already viscerally aware of.
Have an “empty” account where you put only the money you need to transfer and do the transfer right after that.
So, in other words, don’t use cash?
For the things that require you to pay by transfer.
Invest in crypto. Trump was they keynote at the bitcoin conference this year.
People are more worried about day to day living expenses than investment. I live in a major city and maybe 1% of the businesses accept crypto. Zero grocery stores do.
Those have the same custodial risk as a bank account. Not your keys, not your coins.
You keep hold of your keys. Only a small proportion of your assets are accessible by the payment providers.
If it looks like it’s on its way out soon I put a run on that bank like it’s dollar store pantihose
Didn’t a whole silicon valley bank just wipe out its customers savings by not being fdic insured
Apparently not. They managed to set themselves up in such a way that caused the failure, but the majority of depositors had over the $250,000 cap on FDIC insured assets.
That’s not a recession. That’s a depression
2029 looking a lot like 1929.
Just where the fuck will people do their banking without FDIC?
I saw that asshat Andreesen lying his fucking ass off on Rogan about how the poor little tweedums on the right were being “debanked” because of “free speech”, but not anyone else.
Meanwhile, what the hell would you call something like this?
The right has people within it that are just so insane that I really do think some would withdrawal their money from the bank, and set all their own cash on fire if they thought it would pwn teh libz.
A MAGAt would eat his own shit if he knew a WoKe LibRuL would have to smell it
Exactly this.
Places like cash app and venmo… where you can have predation turned up to 11.
Exactly. Maybe that’s the cui bono here - some asshole in donvict’s circle stands to gain a lot of money. I hate the overuse of those apps, by the way. People always telling me to venmo them. I often try to just hand them cash. I hate having some middle man take 3% just to move some bits; absurd.
Uhh, you can use Venmo without losing money. It only costs extra if you use the instant withdrawal functionality. Just wait the 2-3 days to get your money.
That said, I’d rather get cash as well. I don’t like Venmo but sometimes it’s the much easier way. Such as when people live in other states.
How do you move money in and out of Venmo without any fees? I get a 3% fee if I transfer from credit card. I see you can deposit a check and pay 1%.
I just transfer from/to a bank account. That’s free.
The way you’re doing it is basically having them spot you the money until your payment clears. There is a risk, and they charge for that.
Why put it on some other place that can steal your money with no repercussions?
Because people do it already.
Credit unions use the NCUA instead of FDIC. So if they don’t go after that as well there are still some options.
I would just avoid ALL US banks. Canada has CDIC and our future Trumpian PM hasn’t been paid yet to kill it.
US stores don’t care where the money comes from so that could be an option.
Offshore banking: no longer just for the rich!
Canada and the US share a couple shores, so it’s ok
Do y’all have any banks that hold USD? Or are you recommending that I convert my life savings to CAD and transfer to a Canadian bank with CDIC?
Most banks do have USD accounts. How they work or if they are CDIC protected or not, I have no clue
Got a recommendation? Are your banks as bad as your telecom companies?
Any banks without monthly fees for inactive accounts? Credit unions? Non profits?
You’d have to do all that legwork yourself.
I never needed to do this and you seem to a better handle on this than me.
I googled it and seems like I basically need a Canadian tax number unless I get a 0% interest account. Doesn’t seem like an easy option for US Americans.
Maybe I can get a temp 1 month job one day in Vancouver or something…
We should start this rumor. It’ll totally own me. I’ll be so subservient if they burn all their money. 😉
And of course, his pick for secretary of the treasury who would oversee all regulations of the stock market is a hedge fund billionaire 🤦🤬
Should I start stuffing my money under my mattress right now?
Yes. However you save it, don’t leave it with a third party. There will be no FDIC to protect us.
I wonder if the NCUA will fly under the radar though. It may be obscure enough to escape scrutiny from Trump goons.
If rapid inflation occurs, then no (invest in non-monetary assets). If a bank run occurs then yes. Both could definitely happen if they can’t manage to cut trillions of dollars of spending but further cut corporate taxes while deregulating banks and consumer protections. Damned if you do, damned if you don’t.
I guess I could just move to a more expensive place. Anything that happens there wouldn’t be so bad.
Probably should buy durable goods like ammunition.
Check out ammoseek. I’m up 60% and I bought in the height of covid panic.
I’m a pretty privileged millennial in that I bought my place and I’ve since paid it off. So I have quite a bit of durable goods already.
Maybe move your savings to a good local credit union if that’s an option for you.
Is that safer than a national bank if we do away with FDIC? Seems like a local credit union would fail before a large corporate bank. But maybe I’m wrong…
NCUA insures credit unions. The FDIC does banks and is much more well known.
The idea is that they might not get rid of NCUA.
I never heard of this. It’s not a bad thought at all.
I think caps are the go-to currency of the future. Invest in glass soda bottles.
Find the most stable government you can and buy bonds
That’s a pretty good one. Any recommendations? Everywhere seems terrible right now.
I’ve been seriously considered converting money into gold. I keep thinking about how my money is just being depreciated every year while it sits in savings.
Depends upon the amount of interest you’re earning.
Jesus fucking Christ on a stick CAN WE HAVE AT LEAST ONE YEAR WHERE THERE ISN’T SOME MAJOR FIXKING BULLSHIT. 😡
Destabilize?
No, this is far worse. Big banks will just take your money. Credit Unions? I have no fucking idea.
I also can’t just walk into my bank and pull out $10k without raising all sorts of questions and concerns.
Jesus fuck.
When gambling on the failure of stocks is allowed you get stupid people trying to tear the whole thing down over a quick buck smh.
You should be able to pull out $10k fairly easily. When you go to spend $10k in cash, that’s where you’ll get a ton of resistance.
So keep bank receipts for large cash withdrawals.
Looks like a bank run is back on the menu, bois!
I can walk into a bank and get approved to a loan with payments equal to 70% of my income. Regulations are already criminally absent.
Thats been true for a very long time. Before 2008 we had an approval for more than we made per month altogether.
Might as well take a gamble and put all my money in bitcoin if it’s not FDIC insured
Now that is the steal of the century if he pulls it off.
Everyone ready for 1+ trillion to go missing?
Its not much of a gamble historically, as long as you’re willing to hold it for >5 years --the same advice holds for the stock market.
