Getting Ready to Party Like It's 2008
13 days ago
- #regulation
- #Trump-administration
- #financial-crisis
- Lehman Brothers' failure in 2008 triggered a massive financial crisis, highlighting the vulnerability of shadow banks.
- Post-2008 financial regulations aimed to prevent future crises, but Trump's allies are now dismantling these safeguards.
- Efforts to weaken bank supervision and capital requirements under Trump appointees like Michelle Bowman increase systemic risk.
- The promotion of stablecoins through the GENIUS Act introduces poorly regulated banking alternatives, reminiscent of 19th-century wildcat banking.
- Tether, a major stablecoin issuer, faces scrutiny for lack of transparency and potential financial instability, yet operates with minimal oversight.
- Trump administration's deregulation and promotion of risky financial practices may lead to another crisis, with taxpayers likely bearing the cost.
- Corruption and free-market ideology drive the undermining of financial stability, with ties between Trump allies and the crypto industry raising concerns.