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Feds Rule PayPal Is Not A Bank
dthable writes "CNet has posted an article update describing the Feds latest ruling - PayPal is not considered a bank. The article describes the effects of not being a bank which includes the lack of government regulations."
Great comment, mod this guy up.
I use e-gold. The problem is (as told by the greatest Congressman in U.S. history) that the U.S. Government messes with fiat money as well as buys and sells gold in order to hide the terrible inflation (20%+) we're experiencing right now.
We're in a terrible recession but because of the government's holdings in gold, you can't tell because they prevent the price of gold from skyrocketing as it does in an inflation. This is the government you want regulating the banking industry?
a real...armed-revolution-really-might-happen depression...
I want to have one of those. Burning, looting, anarachy. It'd be good for us all, kind of like Outward Bound, but for the country's social fabric.
The depression was caused directly by the Federal Reserve playing with money and interest rates. It was not caused by underregulated banks, in fact, banks had a wonderful history in America of handling the dollar properly.
Our government plays many games with the dollar. They brought us to 20% inflation last year, but hid it by buying and selling gold. They abuse their powers and look into accounts of people they don't like. They freeze accounts of people they don't like. Look at the problems happening in Japan - 0% overnight loan rates. Not caused by the free market, caused by governments trying to stop the free market from stablizing to where the market SHOULD be. For better or for worse.
State regulators have also begun to question whether PayPal is operating an unauthorized money transmitting service. Last month, Louisiana asked PayPal to cease offering its service to state residents until it secured a license from the state to transmit money. PayPal is in the process of applying for such a license, Thiel said.
A license to transmit money? Why don't the just tattoo a 666 on everyone's forehead and be done with it?
No, it doesn't even do that. It insures the accounts into which PayPal deposits the money. That means that PayPal can collect if that bank goes under. It says nothing about you in turn being able to collect from PayPal.