Coin Stories with Natalie Brunell News Block: Trump Targets Credit Cards & Housing Affordability, Morgan Stanley Enters Bitcoin, MSCI's DAT Update
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Jan 12, 2026 This episode dives into intriguing macroeconomic updates, starting with Trump's proposal to cap credit card interest rates at 10%. It also discusses a bold government plan to restrict institutional buyers from acquiring single-family homes. The potential impact of a $200 billion mortgage bond purchase to lower rates is examined, alongside Trump's ambitious $1.5 trillion defense budget. Additionally, MSCI retains Bitcoin-holding companies in its indexes while Morgan Stanley makes significant moves into Bitcoin with ETFs and trading plans.
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Weigh Rate Caps Against Credit Access
- Do consider the trade-off between capping rates and credit access when evaluating interest rate caps like Trump's 10% proposal.
- Expect potential credit tightening if lenders cannot price risk properly, as warned by critics in the episode.
Institutional Buying Is Visible But Small
- Large institutional homebuying is politically salient but accounts for a small slice of single-family stock, around 2% for firms with 100+ homes.
- The deeper driver of housing unaffordability is supply shortages and over-regulation, not only Wall Street purchases.
Treat Large MBS Buys Like QE
- Do note that government-directed large purchases of mortgage bonds mimic QE effects even if not labeled as Fed action.
- Such programs can push mortgage rates down in the short term but are a form of direct market intervention.