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.
Should I start stuffing my money under my mattress right now?
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.
I think caps are the go-to currency of the future. Invest in glass soda bottles.
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.
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.
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.