Banking Endgame, Rate Hikes and Congress Fails Crypto

(Total Words 2,890 - Read time under 7 min)

📰 Good morning Benji Stackers!

Let’s get started with the Top 3 Money Stories that have been Straight Fire since we last spoke, and what they mean for your wallet…

🔥 The Endgame for Banks?

🔥 Highest Federal Funds Rate in 22 Years

🔥 Congressional Fail for the Crypto Industry

We’ll follow up with a little…

🏆 Chart Topping Benji Buzz & Best Links
📈 3 Strong-Buy-Rated Ecommerce Stocks to Watch Now
🏈 Jaw-Dropping Sports Contracts
💸 Extra-Benji Side Hustle for $3K+ Months
⌚ Opulence, Function, and Safety for your Time Pieces

… and finally, some rags-to-riches Financial Inspiration to close things out!

Let’s get into it!

🤔 But First, Today’s Trivia Question! What is the most expensive coin ever sold at auction? (scroll to the bottom for the answer)

🏦 Fear as Basel III Endgame Confirms Sweeping Reforms to Fragile Banking System

During a week that had most folks focused on one ex-President piling up more charges than the Kardashian clan on a Rodeo Drive shopping trip, questions around another ex-President’s suddenly dead chef, and Congress telling us that they’ve been capturing “non-human” creatures and alien crafts for decades…

… not many seemed to notice the most significant (and some say worrisome) changes to the banking industry in, well…. EVER.

Basel III Endgame is now officially confirmed and many banks, especially those with significant physical gold assets, are up in arms due to the new set of regulatory reforms and capital requirements that come with it.

The most considerable apprehension pertains to the Net Stable Funding Ratio (NSFR), which could drive up costs for banks holding gold, thus putting pressure on their profitability.

This may trigger a chain reaction, with banks shedding their gold assets, disrupting gold markets, and potentially destabilizing the broader financial market.

Long-term, these stringent measures could lead to a leaner, more robust banking industry, less susceptible to economic downturns.

However, (and it’s a big however) they may also engender unintended consequences such as an increase in shadow banking and a possible contraction in global lending - both of which could have profound effects on the stability of global financial systems. Read that again.

Get the full skinny HERE

• 💸 What does this mean for your wallet? this news may feel like a sudden jolt. Here are a few takeaways:
  

  1. Safety of Deposits: As an investor or a bank customer, a more resilient banking system is obviously good news from a safety standpoint.

  2. Significant Volatility: if you're invested in gold or banking stocks, brace for potential short-term volatility as the market adjusts to these new standards.

  3. Accessibility to Lending: If banks cut back on lending (and that’s almost certain), securing loans will become more challenging, potentially affecting all major purchases like homes and cars.
     
     While this news has been kept very ‘low key’ the broad-reaching ramifications could be far greater than anyone anticipates or can currently imagine. This is BIG. Stay vigilant with your Benjamins folks.

💵 Welcome to the Highest Rates in 22 Years: Another .25pt Hike While House Prices Continue to Rise

👨🏻‍💼Wednesday’s Fed meeting resulted in yet another rate hike of .25pts, which didn’t come as much of a surprise to most. The Federal Funds Rate now sits at 5.25% - 5.5%, its highest mark since 2001

Powel Stated:

“We will continue to make our decisions meeting-by-meeting based on the totality of the incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks.”

The primary takeaways:

• The process of returning to 2% inflation “has a long way to go”

• Don’t read too much into June’s cooler CPI reading

• The FED is no longer forecasting a recession

So is this trend going to continue or is relief on the horizon? According to Wall Street and expert opinions, cuts are more likely than more hikes.

The latest data from the CME Group’s FedWatch Tool puts just 28.4% odds on December’s target rate remaining at today’s updated level of 5.25% – 5.50%.

Instead, the majority probability (60%) is that the Fed will have cut target rates back to 5.00% – 5.25% by this December.

And now the other good, bad news…

🏠 Housing is simply, horribly out of balance and out of control.

From CNBC:

• Prices nationally rose 0.7% month to month, seasonally adjusted. The index’s 10-city composite gained 1.1%, and the 20-city composite gained 1%.

• Prices nationally were still down 0.5% compared with May 2022, but they are just 1% below their June 2022 peak.

Also, as the CNBC article noted, with prices climbing again this year (despite the “new normal” of 7% mortgage rates), we’re now back to just a shade beneath all-time high prices.

If something doesn’t give soon, the dream of homeownership for many will be, unfortunately, going the way of the Dodo Bird.

Full Story from InvestorPlace - Here

💸 What does this mean for your wallet? 

• Higher Costs: As interest rates rise, loans and credit card debts become pricier, prompting a need to review and possibly pay down outstanding debts.
  

• Increased Returns? Savers may find a silver lining as higher interest rates will boost returns on savings accounts and fixed deposits.🏦
  

• Volatility: those invested in real estate or the stock market should prepare for potential fluctuations as these sectors react to increased borrowing costs.
  
  ** Watch for important inflation numbers to be released later today.

🏦 US Financial Services Committee Fail to Reach Deal on Regulatory Framework for Stablecoins

🏛 In disappointing breaking crypto news, the top Democrat and Republican members of the U.S. House Financial Services Committee have reached a stalemate in their efforts to establish a federal regulatory framework for stablecoins.

Just 24 hours earlier, it appeared a victory for the crypto industry was inevitable.

These cryptocurrencies often pegged to traditional assets like the U.S. dollar, are increasingly becoming an area of interest for federal lawmakers.

The intent behind the proposed bill was to assign the U.S. Federal Reserve the task of outlining the requirements for issuing stablecoins.

At the same time, the bill aimed to preserve the authority of state regulators, seeking a balance between state and federal oversight.

A few key points to note here:

• The bill was modified to address concerns from certain Democrats who worried about stablecoin issuers potentially evading more stringent oversight by choosing to be regulated under a state regime.

• The attempt to reach a consensus was thwarted when Representative Patrick McHenry, the chair of the committee, announced that he had failed to reach an agreement with Representative Maxine Waters, the committee's top-ranking Democrat.

• This stalemate comes hot on the heels of the committee advancing another bipartisan bill. This one aimed at developing a regulatory framework for cryptocurrencies more broadly and clarifying the classification of tokens as either securities or commodities.

  
  💸 What does this mean for your wallet? If you're invested in stablecoins or other cryptocurrencies, these ongoing legislative discussions will impact the stability and future of your investments. Crypto investors want decisions on the fate of crypto out of the hands of the SEC.

Source: Reuters

Most Talked About Benjamin Buzz & Best Links…

• Bitcoin Data Suggests Surge Coming Despite Recent Swoon - Here

• Long Lines of People Waiting for their $WLD Pupil Scans - Here

• Tim Draper Explains Why Bitcoin Will Rise Above Fiat - Here

• US Economic Growth Signals Averted Recession - Here

• Larry Summers Slams Biden Economic Agenda - Here

• Meta Meltdown: Reality Labs $21B Loss in 18 Months - Here

• How to Protect Your 401K from a Market Crash - Here

• Will AI Mania Perpetuate a Stock Market Crash? - Here

• 3 Risky Stocks to Avoid at All Costs in 2023 - Here

• Tips for Building Generational Wealth - Here

📈 STOCK WATCH: Here are 3 STRONG-BUY-RATED Ecommerce Stocks to Watch Now

🛍️ Amazon (NASDAQ:AMZN) While the mega-cap tech stocks have been ripping, Amazon has been taking a bit of a breather, still down about 30% from the all-time high of $186 during the heyday of 2021. That said, other factors are in play that could help it keep the recent momentum trending up for a while longer before cloud and retail has a chance to heat up again.

Target Price: $145.77, 13.75% Upside

🛍️ JD.com (NASDAQ:JD) JD.com is a Chinese e-commerce company that has been slammed by the weakening Chinese economy. Shares are currently down more than 63% from their 2021 all-time highs. The latest dip followed the release of some sluggish Chinese economic data. That said, these lows offer opportunity for tremendous upside for those willing to take on a tad bit of risk

 Target Price: $1,536.11, 30.6% Upside

🛍️ MercadoLibre (NASDAQ:MELI) MercadoLibre is a Latin American ecom giant that has dipped around 40% from it’s 2021 highs. That said, this year’s sales have been strong and plans are in order to bring on around 1,700 more engineers this year, which is a great sign since tech in general is experiencing massive layoffs. All told, this stock could be poised to go on a strong run.

Target Price: $60.77, 55.3% Upside

The bottom line: Ecom stocks offer tremendous upside as the market looks beyond recession worries.

Get the Full Picture - Here

(Not Financial Advice, for Information Purposes Only - Do your own due diligence and speak to a licensed financial advisor)

⚾🏈 Benjamins in Sports 🏀⚽

Being the crusty ol’ Gen X’ers that we are around here at Benji Stacker Central, we’re old enough to remember a time when hearing of a professional athlete getting a million-dollar-per-year contract seemed utterly insane.

I mean really? $1M/year to play a game! That’s just CRAZY!😮

My-o-my how far we’ve come.

In case you haven’t heard, here are just a few of the latest player contract news items to hit the airwaves recently…

• Justin Herbert of the LA Chargers: 5 years added on to his current contract bringing his total to 7 years, $296.2M
  

• Jaylen Brown of the Boston Celtics: 5 years, $304M💰
  

• Lamar Jackson of the Baltimore Ravens: 5 years, $260M💰
  

• Jalen Hurts of the Philadelphia Eagles: 5 years, $255M💰
  
  Now these might seem off the charts to most, but what about the biggest contracts of them all? Well dangit, all I can say is I wish I would have learned to play soccer as a kid…
  
  In 2017 Lionel Messi of FC Barcelona (at the time) signed a 4-year, $674M deal for an AAV of $168.5M, and…💰💰
  
  Earlier this year, Cristiano Ronaldo of AL-Nassr signed a 2-year, $536.3M contract, for an AAV of $214.5M!💰💰
  
  But all is not sunshine and roses!
  
  😔 In somber news from the ramen noodle category of salaries, it was reported earlier this week that Aaron Rogers of the Green Bay Packers New York Jets, agreed on a $33M cut in pay in order to free up extra dollars for the team to add more quality talent around him.
  
  You don’t see that every day! Now he’ll have to make ends meet on a paltry $75M over the next 2 years. Hope he can make rent in the Big Apple! 🤑

💵 1 Money-Making Side Hustle - Anyone can start this week to add a few or many, extra Benjamins to your wallet…

Uncover Your Path to Earning $3K+ Monthly By Collecting People's Bulky Returns

💸 Let’s face it, entrepreneurship is irresistible - the freedom, the thrill, the independence. Yet, the harsh reality is that many fledgling businesses don't survive beyond their initial years.

Here's an alternative way, no need for a hefty business loan. The only requirement? A vehicle spacious enough to carry returned customer goods and a little, good ol fashioned elbow grease.🚗💪

There's a company called Sharetown that's willing to pay you for collecting bulky items like furniture, gym equipment, and other large customer returns.

Representatives of Sharetown average about $2,000 to $3,000 each month, dedicating only around 10 hours per week. However, many duo teams like siblings and couples have been reported to earn substantially more.👫

The idea originated with customers returning those compact, boxed mattresses. But now, Sharetown handles an array of bulky returned goods.🛏️📦🔄

You receive a notification for a new pickup task, and you can operate at times that suit you best. That’s all there is to it!

So, ready to break free from being a corporate pawn? Essentially, if you’ve got a reliable vehicle, a clean slate background, and an extra pair of hands, you’ve got everything needed to kickstart your own venture with Sharetown.🚗✨

» Apply Here

Remember, success in blogging or any side hustle requires dedication, hard work, and patience. Now get to it!🚀

💰 Spending Benjis Like a Boss 💰

⌚✨ THE PEAK OF LUXURY - RAPPORT PARAMOUNT WATCH WINDER CABINET: A ROYAL THRONE FOR YOUR TIMEPIECES

👋 The epitome of elegance and function fused into one - the Rapport Paramount Watch Winder Cabinet. 

For the horological enthusiasts amongst us, this may just be the dream home your timepieces have been waiting for! ⌚Embodying the epitome of British craftsmanship, the Paramount Watch Winder Cabinet is a haven for your luxury watches.

Much like an esteemed sommelier cares for his precious wines, this Cabinet ensures your high-end timepieces are immaculately maintained and displayed with the pomp and ceremony they truly deserve! 🛠️

Decked out in a stunning high-gloss piano finish, this opulent cabinet does more than merely wind your watches. Its elegance and sophistication is a statement, a piece of art that commands attention in any room.

Think of it as a modern-day throne for your regal timepieces! 👑

Inside the vault, you'll find 15 Swiss-made winders, each one adjustable to ensure your timepieces are always in prime condition, running as smoothly as a Swiss mountain stream.⌚

The top drawer offers additional storage for your watch-related paraphernalia, (think extra straps, cleaning tools, or even those secret heirlooms) while the pull-out drawer at the base reveals a humidor for your fine cigars, a mini-bar for your preferred spirits, and an exquisite space for your precious pens.

Imagine the joy of selecting a fine cigar, a delicious sip of cognac, and a treasured pen to sign that groundbreaking deal, all from the comfort of your watch cabinet! 🍸✒️💼

Fancy some added safety? The Paramount comes equipped with a biometric lock for enhanced security. After all, your horological treasures deserve nothing less than Fort Knox-level protection! 🔐

Check out the full lineup of Rapport Watch Winders Safes and Cabinets - Here

✨Today’s Financial Success Inspiration

From Living in a Car to Hair Care & Taquilla Billions: The Story of John Paul DeJoria

💇 John Paul DeJoria was born in 1944 in Newark, New Jersey. He was raised by his mother, who worked as a cleaning lady. DeJoria dropped out of high school at the age of 16 and joined the Navy. After his discharge from the Navy, he worked as a janitor, a truck driver, and a salesman.

In 1971, DeJoria and Paul Mitchell founded John Paul Mitchell Systems, a hair care company. The company was initially successful, but it went bankrupt in 1979. DeJoria and Mitchell were forced to start over, but they were determined to succeed.

In 1980, DeJoria and Mitchell founded Patron Spirits, a tequila company. Patron Spirits was an instant success, and it quickly became one of the most popular tequila brands in the world. DeJoria and Mitchell became extraordinarily wealthy, and they are now two of the richest self-made men in the United States.

John Paul DeJoria's story is an inspiration to anyone who has ever dreamed of achieving financial success. He started from humble beginnings, but he never gave up on his dreams.

He was a hard worker, and he was always willing to take risks. He also had a great sense of timing, and he was able to capitalize on the growing popularity of tequila in the United States.

💰 Just how successful were these ventures, you ask?

• John Paul DeJoria's net worth is estimated to be $2.8 billion.

• Patron Spirits is one of the most popular tequila brands in the world, with sales of over $700 million per year.

• John Paul Mitchell Systems is a leading hair care company with annual sales of over $1 billion.

DeJoria's story is a reminder that anyone can achieve financial success if they are willing to work hard, take risks, execute their ideas, and be persistent.

🤔 Answer to Trivia Question: The most expensive coin ever sold at auction is the 1794 Flowing Hair Silver Dollar. It was sold in 2013 for $10 million. The coin is made of 90% silver and 10% copper, and it weighs 26.73 grams. It is one of only 15 known examples of the coin, and it is considered to be in excellent condition.

💲The coin was originally owned by John W. Garrett, the president of the Baltimore and Ohio Railroad. Garrett acquired the coin in 1869, and it remained in his family until it was sold at auction in 2013.

The buyer of the coin was an anonymous collector who placed a bid of $10 million over the phone. The sale of the coin set a new world record for the most expensive coin ever sold at auction.💰

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