The banks are afraid, very afraid. Why? Walmart.

It seems like the mega-retailer is interested in moving into the banking business. This has the banks worried. Reasonably so. If Walmart is as successful in this endeavour as they are in the retail market, many banks will be feeling the heat.

Also, if Walmart is successful in the world of high finance, what would the repercussions be? Controlling the retail market and the money required to purchase goods? Could this end up controlling countries economies?

moneycentral.msn.com...

The elite of the US, who are amassing the capital through Bush's tax cuts, will probably not trust the folks at WalMart with their millions--even if the old man in the blue walmart hat is smiling at the entrance.

Their entrance would certainly changes the financial world , but it wouldn't be earth shattering, at least not immediately. Maybe the closing of savings and loans, but the article points out that Wal-Mart cashes checks but there are still other check-cashing companies (often ripoffs) in business. At any rate, its "low finance" that would suffer before investment bankers.

Are already probably hiring squads to make sure Walmart management doesn't mess with them.

Humm, I wonder what their morgage rates would be? Free checking for life? No atm fees? Free transfers and online banking? No account limit fees? Open 24/7?

Not that I'm a Wal-Mart fan by any means, but some cheaper competition may scare the big guys into giving us our money's worth for a change. Now THAT I would welcome.

Rat Bstrds!!

Wow this must tear the hearts of liberals: whom to support? Banks or Wal-Mart?

Wal-Mart seems to be turning into a one-stop-shop for everything in rural and suburban America, so I see a move into banking as only logical.

from Partyof1
Not that I'm a Wal-Mart fan by any means, but some cheaper competition may scare the big guys into giving us our money's worth for a change. Now THAT I would welcome.

Can you imagine the positive effects they could have on the mortgage market? Own your home in ten years instead of thirty, at a reasonable cost.

It's not like this idea is without precedent. Correct me if I'm wrong, but don't most if not all auto makers have their own consumer financing arms, like GMAC Credit, Ford Motor Credit, etc.?

EDITS for typos

[edit on 15-3-2005 by jsobecky]

[edit on 15-3-2005 by jsobecky]

[edit on 15-3-2005 by jsobecky]

Originally posted by jsobecky

from Partyof1
Not that I'm a Wal-Mart fan by any means, but some cheaper competition may scare the big guys into giving us our money's worth for a change. Now THAT I would welcome.

Can you imagine the positive effects they could have on the mortgage market? Own your home in ten years instead of thirty, at a reasonable cost.

It's not like this idea is without precedent. Correct me if I'm wrong, but don't most if not all auto makers have their own consumer financing arms, like GMAC Credit, Ford Motor Credit, etc.?

I believe you are correct about the financing arms.

I was also thinking it'd be kinda nice to have a credit card with an interest rate in the low single digits.

Originally posted by djohnsto77
Wow this must tear the hearts of liberals: whom to support? Banks or Wal-Mart?

Wal-Mart seems to be turning into a one-stop-shop for everything in rural and suburban America, so I see a move into banking as only logical.

Don't worry with the links of Wal-Mart and China I bet is going to be Chinese investors in to manage the Wal-Mart banking system.

Better start learning Chinese because they are going to own our country.

By the way one of bushes "advisors" The director of the national economic council Stephen Friedman have "wal-mart" conections.

Stephen Friedman -- White House
Assistant to the President for Economic Policy and Director, National Economic Council

Stephen Friedman is the Assistant to the President for Economic Policy and Director of the National Economic Council. He has an extensive background in American enterprise, finance, and public service. Mr. Friedman spent 28 years with Goldman Sachs & Company where he served as Co-chairman from 1990-1992, and Chairman and Senior Partner from 1992-1994. Before entering government service, he was Senior Principal at the investing firm Marsh & McLennan Capital. He served on the boards of directors of Goldman Sachs, Fannie Mae and Wal-Mart Stores, Inc. Mr. Friedman’s record of public service includes his membership on the President's Foreign Intelligence Advisory Board.

Yes, not to worry is all aproved by the Bush administration so is ok.

Have to keep the friends interest going and profiting. Right?

Viva la corporacion.

[edit on 15-3-2005 by marg6043]

mmmm concentration of power and money is so yummy.

I don't know if its as serious as all that. and are they going to be banks, or are they going to function like paypal? IE banklike, but not actual banks?

Why would walmart want the regulations that come along with actual banking?

Ah well, whats next, Walmart is granted a charter to administer a colony?

This may be a good thing!

This is just what the doctor ordered to bring the retail giant crumbling down to Earth.

The present-day Wal-Mart is nothing like what it use to be.

Not only are their prices are cheap. Their products reflect on their prices!

CHEAP!

Originally posted by jsobecky
It's not like this idea is without precedent. Correct me if I'm wrong, but don't most if not all auto makers have their own consumer financing arms, like GMAC Credit, Ford Motor Credit, etc.?

A very good friend of mine works for Daimler-Chrysler (very high up - he's now based in Germany ) he says that the company makes most of it's profits from financing followed by the parts market.

Notice how they are practically screaming at you in commercials to "take this damn car off our lot!"; "Here we'll pay YOU with this big "rebate" etc? And even at 0% financing they still manage to make money from the parts market. The car itself has become a loss leader.

I also heard that some Wal Farts have used cars lots in the US. Is this true?

Oh and...

Originally posted by intrepid
Could this end up controlling countries economies?

What makes you think they don't already? See RANT's The Real New World Order Revealed!!!

I read somewhere recently that they already account for several percentage points of the US's GDP.

edit: forgot to address the topic

Allowing Wal Mart to capture yet another market with promisses of lower costs to you is an illusion. Their lower prices DO come at a price (you figure out what that is ). Unfortunately it is a price people are far to willing to pay. I for one won't pay it - The Waltons will never again see a penny of my money. (shopped there twice before I got wise )


[edit on 3/15/2005 by Gools]

I wouldn't be surprised to hear about this piece of legaslation. The "old" riche would like to distance itself from the "nouveaux riches". It's aggressive. Try to put it down.

Originally posted by Gools
shopped there twice before I got wise

I don't follow. Walmart makes garbage and sells it on the cheap. When that doesn't work they make garbage and sell it in bulk. Whats this about?

Here in Canada, Superstore already has its own banking system, in conjunction with CIBC. I don't have a "President's Choice" account there, but you apparently get really good interest rates, no monthly fees, and can transact at any CIBC ATM, a major Canadian banking institution.

www.pcfinancial.ca...

The difference seems to be that Walmart would be creating their own bank without any kind of backing from an existing bank. I'm not sure what the economical implications of a retailer also operating a bank would be, since I have no economics training. If this went through, however, Walmart would have both the retail business and the banking institution, meaning they could do things like give their banking customers better deals than others and more easily track consumer spending habits (they would have records of EVERYTHING you paid for with debit or cheque, not just at Walmart)

This proposal by Walmart to go into banking means they are getting into multiple 'levels' of the economy. (not sure what the proper economics term is here) I'll leave the implications of this to someone who has more knowledge of the topic.

I live just down the road from the Waltons in the northwest corner of Arkansas.

They already own the banking here. I used to bank with them but they ticked me off so I switched banks. They bought the bank I switched to so i'm now banking with ARVEST again. You cannot escape them.

I live a few blocks from the Walton arts center. A few blocks in the other direction is Bud Walton arena. Wal_mart started in this section of the state and they have spread. They now own EVERYTHING here and soon they will own everything where you live.

My two daughters work at Wal-Mart. My bank is owned by wal-Mart. All my shopping is done at Wal-Mart.

Resistence is futile. You WILL be assimilated.

Wupy

Originally posted by Nygdan
I don't follow. Walmart makes garbage and sells it on the cheap. When that doesn't work they make garbage and sell it in bulk. Whats this about?

What's to follow? You hit the nail on the head. They make garbage on the cheap and you get what you pay for.

That's the original reason I would not shop there (now there are sociological and philisophical principles not to).

I won't throw my money away on landfill. I'd rather buy quality that lasts longer. If you have to buy it two or three times you don't save in the long run.

Besides, expensive goods (reflecting even environmental costs) without planned obsolescence would go a long way in curbing our consumerist fashion based mindset.


[edit on 3/15/2005 by Gools]

Originally posted by mrwupy

I live a few blocks from the Walton arts center. A few blocks in the other direction is Bud Walton arena. Wal_mart started in this section of the state and they have spread. They now own EVERYTHING here and soon they will own everything where you live.

My two daughters work at Wal-Mart. My bank is owned by wal-Mart. All my shopping is done at Wal-Mart.

Resistence is futile. You WILL be assimilated.

Wupy

You know is like a disease is spreading and infecting very fast, very soon it will be laws protecting them from us so we don't drive them out of business with "frivolous law sues" just wait and see.

Originally posted by djohnsto77
Wow this must tear the hearts of liberals: whom to support? Banks or Wal-Mart?

this 'liberal' would love to tear the heart out of every fat cat, and serve it for breakfast at the breadline. 'whom' to support is credit unions and mom and pop organisations.
boycott walmart!!

Originally posted by djohnsto77
Wal-Mart seems to be turning into a one-stop-shop for everything in rural and suburban America, so I see a move into banking as only logical.

walmart seems to be undermining free enterprise and removing choice and competition from the marketplace of rural and surburban america.

save money! buy chinese , shop at the great walmart of china.

You know being a Wal-Mart employee I think this would be a wonderful step for us. I seriously don't see the problem. We sell the same consumable goods as any other grocery stores. And as far as our retail products, well we pretty much give the same exact electronics, sporting equipment, gardening supplies and hardware as any other retailer. Personally I have never had a problem with any product I have EVER purchased from my employer, although I wouldnt mind a slightly higher discount. But hey on another note, did you know Wal-Mart makes an astonishing $20,000 of profit, key word here being profit per minute!!!! Thats friggin awesome.

Originally posted by DYepes
But hey on another note, did you know Wal-Mart makes an astonishing $20,000 of profit, key word here being profit per minute!!!! Thats friggin awesome.

Yeah... that's umm... well awesome is one word for it.

Now knowing that, how much are you paid and do you think that is a fair wage considering that little bit of information?

What makes you so happy that the Walton family is making so much money at your expense?

Too bad no one ever taught you to fish.


[edit on 3/15/2005 by Gools]