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US Banks are Getting Frantic


XRPKronk
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2 hours ago, mattwayne_c said:

Alright guys, its been a hell of a week for Ripple and crypto in general. We are witnessing the beginning of a banking revolution- its only going to get crazier as we head into 2020.

 

PART 1: Let me start this post by telling you a conversation I had with my mother, an executive loan officer and branch manager of a regional bank in the south:

After the usual mother/son conversation, I asked her how her job was going since she just came back from family leave. APPARENTLY....

"The top executives are freaking out. The projections for loan income are completely off due to the FED announcement."

If you're not in the US, basically the central bank wants to lower interest rates next month. The effect? Here is an excerpt from a Yahoo Finance article:

https://finance.yahoo.com/news/fed-interest-rate-cut-horizon-121512567.html

So, US banks will be struggling to make the quota for this fiscal half because the banks projected the rate to actually increase rather than decline. This meant that many banks gave adjustable rate loans to borrowers in hopes that the prime rate would increase over time. 

 

PART 2: Responses from other banks have ranged from nonchalant to panic

As you can imagine, banks want to keep a lid on their panic state. Most have released statements that say they were prepared for the rate decline. Some are in denial and think the FED will call back on its majority vote to cut the rate

https://www.cnbc.com/2019/06/20/one-major-bank-is-holding-the-line-saying-the-fed-wont-cut-rates-this-year.html

Once Goldman Sachs executive went all the way to say smaller banks are screwed 

https://www.bloomberg.com/news/articles/2019-06-20/goldman-sachs-executive-says-legacy-retail-banks-are-screwed

Based of the conversation with my mother, I would agree that the banks are concerned and stand to lose a lot of money. 

 

BONUS: Here is a picture of the executives in a meeting. Im proud of my mom because she is the only woman on the board :good:

 You go, mom!

PART 3: ENTER CRYPTO- Libra is announced, and the Moneygram Move

Okay so, unless you live under a rock, the news this week has been amazing. Facebook announces Libra under much criticism.

The announcement had a few effects:

  • Whether you love it or hate it, it has helped bring crypto into the spotlight this week. All press is good press for crypto, that much is true. 
  • Regulators have sprung into action. Already making statements about the regulation of Libra and crypto in general. (See quotes below)

https://www.apnews.com/ee872c2a79494a1183866bd1dc9c9083

https://www.cnbc.com/2019/06/20/facebook-libra-cryptocurrency-faced-with-central-bank-warnings.html

https://cryptonews.com/news/fatf-decides-to-tighten-crypto-regulation-report-4092.htm

There are plenty of other quotes, but i think this suffices.

  • A final effect is that banks will be looking for an alternative or an edge against their competitors. Ripple and Xrapid already exist and has gone through extensive trials over the past 5 years. 

Brad Garlinghouse has already made the statement that Ripple has has a "record week" due to the Libra Announcement:

BOOM:bomb:Thank you, Facebook.

Ripple is also in the spotlight for the Moneygram Deal. MoneyGram's Stock rose over 150% and huge announcements for new corridors were made as moneygram is expanding their footprint in India. 

Ripple is making other moves as SBI Remit and SCB Thailand are featured in their Paying Forward promo videos (check twitter, i'm too lazy at this point to embed them lol)

 

Conclusion

TLDR: Banks are hurting from the potential FED rate drop and crypto appears this week to banks as a way to cut costs. 

The financial transformation is on the horizon and is approaching fast!

 

If your read all that, congratulations. You're amazing!

Sounds like another opportunity coming to lock in some 30 year money dirt cheap again. Banks borrow short and lend long, Not a good strategy in a zero interest rate environment and real inflation being greatly underestimated by the Fed.

I'm gonna drink their milkshake.

Edited by dr_ed
To protect the innocent.
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5 minutes ago, dr_ed said:

Sounds like another opportunity coming to lock in some 30 year money dirt cheap again. Banks borrow short and lend long, Not a good strategy in a zero interest rate environment and real inflation being greatly underestimated by the Fed.

I'm gonna drink their milkshake.

There will be blood... on wall st. 

I think we will see a lot of capital move into crypto. I dont know what this means for the power of the US dollar... that's my only hesitation for taking out a loan. (Also, a 21yo doesnt need a mortgage lol) .

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3 minutes ago, mattwayne_c said:

There will be blood... on wall st. 

I think we will see a lot of capital move into crypto. I dont know what this means for the power of the US dollar... that's my only hesitation for taking out a loan. (Also, a 21yo doesnt need a mortgage lol) .

Tell your mom to bring up XRP at the next board meeting :lol:

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If anyone wants to do a traditional investing subforum, maybe I'll play - lots of young ppl here who only know "investing" through crypto and lots of older ppl trying to tell them to diversify over multiple asset classes - but, anyway, without commenting on the intricacies of the federal funds rate, myself, I don't see what this particular post has to with XRP...

Also, your mom's probably not thrilled that you posted this.  I'd remove it, before the board goes back to being all male............. if you know what I mean.

(Please pay close attention in HIPAA class, doc.)

Edited by NightJanitor
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21 minutes ago, NightJanitor said:

If anyone wants to do a traditional investing subforum, maybe I'll play - lots of young ppl here who only know "investing" through crypto and lots of older ppl trying to tell them to diversify over multiple asset classes - but, anyway, without commenting on the intricacies of the federal funds rate, myself, I don't see what this particular post has to with XRP...

Also, your mom's probably not thrilled that you posted this.  I'd remove it, before the board goes back to being all male............. if you know what I mean.

(Please pay close attention in HIPAA class, doc.)

I get where you are coming from but WTF does this have to do with HIPPA (Health Information Privacy Protection Act) Someone discussing their colon ostomy at the meeting or something???

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2 minutes ago, RikkiTikki said:

I get where you are coming from but WTF does this have to do with HIPPA (Health Information Privacy Protection Act) Someone discussing their colon ostomy at the meeting or something???

His profile says he's "a poor medical student"...  I think he should s-t-f-u and study, instead of endangering his mom's job... but i'm just an old hardass, so wtf do I know.

Edited by NightJanitor
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Just now, NightJanitor said:

His profile says he's "a poor medical student"...  I think he should **** and study, instead of endangering his mom's job... but i'm just an old hardass, so wtf do I know.

Gotcha!!!  I agree with you 100% I'm pretty sure that wasn't a public meeting.  Sorry I didn't catch the play on the profile.

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47 minutes ago, Paradox said:

Tell your mom to bring up XRP at the next board meeting :lol:

That idea has been thrown around a lot! Currently, the policy is zero crypto tolerance. Maybe that might change after this quarter.

She is actually looking to switch jobs to got to a crypto bank/firm 

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37 minutes ago, NightJanitor said:

If anyone wants to do a traditional investing subforum, maybe I'll play - lots of young ppl here who only know "investing" through crypto and lots of older ppl trying to tell them to diversify over multiple asset classes - but, anyway, without commenting on the intricacies of the federal funds rate, myself, I don't see what this particular post has to with XRP...

Also, your mom's probably not thrilled that you posted this.  I'd remove it, before the board goes back to being all male............. if you know what I mean.

(Please pay close attention in HIPAA class, doc.)

Good point. I understand the risks. I obfuscated the location and size of the bank. I highly doubt you can trace these people back. If you can, Kudos. 

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46 minutes ago, NightJanitor said:

If anyone wants to do a traditional investing subforum, maybe I'll play - lots of young ppl here who only know "investing" through crypto and lots of older ppl trying to tell them to diversify over multiple asset classes - but, anyway, without commenting on the intricacies of the federal funds rate, myself, I don't see what this particular post has to with XRP...

Also, your mom's probably not thrilled that you posted this.  I'd remove it, before the board goes back to being all male............. if you know what I mean.

(Please pay close attention in HIPAA class, doc.)

If you cant see what this post has to do with XRP, there is little help this doc can do. 

Ripple uses XRP for banking software. Banks and money transfer services are starting to adopt crypto. The recent stress on banks by the FED may push banks towards adopting XRP.....

There. Spelled it out for you.

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