Walmart and banking

So Walmart is unregulated in the financial services market. This story is old, from May, but this has been going on for awhile. I just think that traditional banks began to take issue with it in May.  Wal-Mart financial services aren’t regulated like financial services are supposed to be, placing them on par with fringe banks or, shadow banks, I think they’re also called. So. Walmart is offering banking services. Hmmm..

Full disclosure: I have really mixed feelings about Wal-Mart.  It permits people to purchase items they would not otherwise be able to afford. It’s ubiquitous, so the savings are spread everywhere and Americans need never feel like they’re far from home, particularly when they need to purchase things that are hard-to-find. They allow RVs and campers to stay on their lot for free, something Cohiba and I may take advantage of one day.

On the other hand, they have forced out smaller businesses (either a positive or negative thing depending on your perspective). They outsource their items to get cheaper (“We pay the workers next to nothing so we can pass the savings on directly to you, the customers!”) but it also impacts the value of American-made items. They treat their employees shamefully – not giving them full-time work or full-time wages and offer substandard health insurance. (I will say this, however; my mom had to work for Sam’s for a period when I was a child so that we could move to a different school district, and she was able to get a few stock options on the cheap that are her retirement nest egg. So you got that going for ya.)

Finally, allowing one entity or company to be everything to everyone is a lot like letting the government take over and run things. It will try to suit the majority, but won’t work. It will decrease the freedom people have. A socialist wal-martization of the US.

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