If you’re interested in money and the impact that it has on the world around us, you’ve probably already heard the news. Matthew Peterson, the vice chairman of the Federal Election Commission (FEC), recently tendered his resignation to President Trump, formally stepping down from his 11-year role on August 31, 2019.
This is big enough news as is, but the most interesting thing is that Peterson’s departure left the agency unable to vote. That’s because there’s a law in place stating that at least four votes are required for “any official Commission action,” and only three commissioners remain. This is super important for consumers because the FEC regulates finance and its affiliated industries throughout the United States.
At first glance, it might seem as though this doesn’t have much to do with consumers, but consumers are ruled by the constraints of regulations, laws and other factors that the FEC has control over. And with Peterson’s departure, it’s no surprise that consumers are facing a riskier lending environment. It all comes down to one little word: uncertainty.
Uncertainty
Uncertainty is a killer in the financial industry, and yet it’s a factor that can never be fully stamped out. It’s uncertainty that leads to interest rates for loans because no matter how good someone’s credit rating is, there’s no such thing as a guaranteed investment. Lenders have to charge interest rates to make up for the money that they’ll inevitably lose from people who default on the loan.
Because of this, consumers are increasingly turning to short-term loans from companies like OpenCashAdvance, because sometimes it’s the only option when cash flow is an issue. These short-term loans can help people to make it from one payday to another. At the same time, they’re riskier than traditional loans and come with higher interest rates.
With the news of Matthew Peterson’s departure from the FEC, the only thing that we can be certain of is uncertainty. One key area of uncertainty lies around the upcoming 2020 presidential election. It’s the FEC’s duty to investigate campaign violations, including when it comes to where donations are received from. The problem is that they can’t issue fines or offer guidance without a quorum of at least four members.
For some people, this raises concerns about foreign interference with US elections, and if those fears turn out to be grounded, then there could be a real impact on the economy, both nationally and internationally. After all, uncertainty can lead to financial growth slowing, and uncertainty about the political environment is the worst kind of uncertainty of all.
And that makes sense: after all, who’s going to want to lend money when political uncertainty has led to a recession or a crash in the local currency? In times of adversity, people like to hunker down and to stockpile their resources, which means that if you’re looking to take out a long-term loan, then you’re better off looking around during a time of stability. Let’s just hope it’s not too late.
Conclusion
Ultimately, knowledge is power when it comes to the financial industry, and just like with G. I. Joe, knowing is half the battle. The good news is that by reading this article and familiarising yourself with the latest developments, you’ve put yourself in a good place to stay ahead of the industry and to safeguard your loans and your investments.
Ultimately, borrowing and lending is always going to be risky to a certain extent, but you can reduce the risk by making sure that you’re up to date with the latest developments in the financial industry. Peterson’s resignation is today’s sujet du jour, but there will always be something new happening, and so ultimately it falls to you to stay on top of it all.
In the meantime, whether you’re borrowing or lending, you can also reduce risks by spreading your bets and by working with a financial professional who has the expertise you need to shepherd you through this unpredictable new landscape. And the worst-case scenario isn’t that lending will become a thing of the past – it just might get a little more difficult. Good luck.
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