🇺🇲 #Trump's 10% CREDIT CARD INTEREST CAP — A HIDDEN RISK FOR 2026 🚨🚨🚨
🔥 On the surface, a 10% credit card interest cap sounds pro-consumer. Lower rates mean less debt stress, more disposable income, and happier borrowers. But the reality is far more complicated — and potentially dangerous for the financial system.
🎯 Banks charge 20–30% for a reason: credit cards are unsecured, high-risk loans. That interest covers default risk, operational costs, funding, fraud, and even rewards programs. If rates are forced down to 10%, banks can’t absorb the losses. They respond by tightening credit, cutting limits, and raising fees. Riskier borrowers are effectively shut out, while only prime users retain access.
📢 Small and regional banks take the first hit. With credit card margins slashed, profitability falls, balance sheets weaken, and lending slows. The effects ripple through the economy: consumer spending drops, delinquencies rise, and financial stress spreads.
✒️ what seems like a pro-consumer measure could create a credit shortage, hurting the very people it aims to help. Politically, it’s appealing. Financially, it’s risky.
⚠️ If implemented in 2026, a real credit event is almost guaranteed. Watch the markets closely — this could reshape lending and bank stability.
$WAL $BTC #WAL #walrus