Americans seem to be worried about the banking crisis; memories of the 2008 financial crisis loom | wayne dupree

Americans’ worries about their bank accounts appear to be similar to those of the 2008 financial crisis. A Gallup survey conducted after two banks collapsed, but before a third fell, found that 48% of American respondents are “very” or “moderately” worried about money stored in bank accounts. This is comparable to September 2008, when 45% of American adults said they were “very” or “moderately” concerned about the safety of their bank money following the collapse of Lehman Brothers. After government bailouts aimed at saving the banks, the percentage fell to 41% by December 2008.

Asked about their level of worry between April 3 and 25, 19% of respondents say they are “very worried”, 29% say they are “moderately worried”, 30% say they are “not too worried” and 20% say they are not Were not worried at all. Nevertheless, there were significant variations in terms of political affiliation, wealth and level of education. According to Axios, 55% of Republicans and 51% of Independents said they were extremely or somewhat concerned about their money, compared to 36% of Democrats. This is “consistent with other polls that show economic concerns escalate if your party is not in the White House.”

Unlike people without a college degree, the percentage was 36% for Americans with a college degree. Less-educated Americans may not be aware of FDIC insurance, which protects depositors at banks covered by the Federal Deposit Insurance Corporation against losses of at least $250,000, Gallup says. Despite recent bank meltdowns, “no depositor has lost money, including those whose funds exceed the quarter-million dollar limit for FDIC insurance,” according to Axios.

Sheila Bair, a former FDIC official, told CNN last week that “the vast majority of banks are fine” and that “our system can handle that.” Jerome Powell, Chairman of the Federal Reserve, said, “The US banking system is strong and resilient. However, high levels of fear among low-income Americans (about 50% versus 40% for those with incomes over $100,000) may indicate “less trust in a system they feel often leaves them at risk.” the gap,” according to Axios. According to Brookings senior researcher Aaron Klein, who cites the increase in some bank fees during the 2008 financial crisis, they might view bank failures as “bad for them” in general.