Economists: Trump's allies are dismantling the regulatory measures established after the 2008 financial crisis, aimed at preventing future financial crises.

Odaily News Paul Krugman warns that Trump's “cronies” are undermining financial stability: “Prepare to revel like in 2008.” In his latest article last Friday, the economist stated that Trump's allies are dismantling the regulatory measures established after the 2008 financial crisis, aimed at preventing future financial crises. Krugman pointed out that allies of the Trump administration are actively weakening bank regulations, which is a key function of the Fed. Fed Governor Bowman, appointed by Trump, is advocating for the relaxation of capital requirements for banks, which may increase short-term profits for banks but also heightens the risk of another crisis. Additionally, Krugman emphasized the Trump administration's support for the encryption industry, particularly through the promotion of stablecoins via the “GENIUS Act.” He warned that stablecoins issued by companies like Tether, which are poorly regulated, could pose systemic risks similar to those of 19th-century private banking. (Jin10)