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Hi all from TMF 😀😀


https://finance.yahoo.com/news/apple-launches-high...


So AAPL with it's customer base of 1.36 million comfortably off customers globally ... will be marketing this account paying 4.15% at Goldman's FDIC insured bank. No doubt with some super fintech like access features. What's not to like?

What's not to like is the average bank paying less than 1% while money funds are also offering well over 4%. But if those banks have lent money out or bought securities earning less than 4% ... they simply can't compete. So either by losing deposits or by losing capital ... they will have to contract lending, contracting the money supply ... squeezing the economy ... even more than the Fed is doing by their balance sheet rundown.

Slow burning stockmarket time bomb ticking away?

... or offset by infrastructure spending??

There are plenty of 4% money market savings accounts around. So it has an Apple logo on it. Big deal? Apple/Goldman can only pay 4% if they can find a way to deploy the funds earning higher than 4% net of expenses. It is not like Apple can just use the funds to buy back shares. They have to buy earning assets with appropriate risk and duration. This will be part of an FDIC insured bank. I just don't see it as a gamechanger.

A 'money market' is not FDIC, for a lot of people that's a difference.

I suspect Apple is just getting paid as a lead generator for Goldman, who is offering 4.15% through its bank. There are plenty of banks offering over 4%, so clearly they think they can earn more than that and pocket the vig and still pay the expenses.

Goldman sees the Apple customer base as wealthier (duh) and having a right-of-way into their pocket is a worthwhile construction project. Apple sees Goldman as stable, offering an FDIC account with good interest as a consumer benefit, and gets paid a slice along the way. Both entities win, and it's hard to see how the Apple customer loses.

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