U.S. Banking Crisis Hurts Middle Class
Biden’s economy is already crumbling and now this has raised everyone’s concerns.
According to the most recent Gallup Poll released on Thursday, nearly 50% of Americans are concerned about the security of their bank deposits due to the recent collapses of regional banks in the face of increasing interest rates and inflationary pressures.
According to Newsmax, the results of the poll indicate that the level of concern among Americans regarding the safety of their bank deposits is comparable to the apprehensions expressed during the 2008 financial crisis. Specifically, 19% of respondents are extremely worried, while 29% are moderately worried, resulting in a total of 48% of those surveyed expressing concern.
The level of concern among Americans about the safety of their bank deposits appears to be more severe than during the 2008 Great Recession, when Lehman Brothers declared bankruptcy, the largest in U.S. history. At that time, Gallup conducted a poll which revealed that 45% of U.S. adults reported being either extremely or moderately worried about the safety of their money, which is slightly lower than the current figure of 48%.
It should be noted that the latest Gallup Poll was conducted prior to the third bank collapse this year, which involved the takeover of First Republic Bank by JPMorgan Chase. First Republic Bank’s collapse marks the most significant bank failure since 2008.
As reported by CNBC, similar to the recent collapses of Silicon Valley Bank and Signature Bank under President Joe Biden’s economy, First Republic Bank was a specialty lender based in California that targeted affluent customers in coastal areas. The bank offered low-rate mortgages to these customers in exchange for keeping their cash deposits with the bank.
Megan Brenan, in her analysis’ “bottom line,” wrote that due to the recent series of high-profile bank failures in the U.S., roughly 50% of Americans are worried about the security of their money held in banks or other financial institutions. This level of concern is comparable to that observed during the 2008 financial crisis when several financial institutions that were previously believed to be “too big to fail” collapsed.
It is worth noting that the level of concern regarding the safety of bank deposits is not uniform across party lines. According to the Gallup Poll, a majority of Republicans (55%) and Independents (51%) reported being at least moderately worried, while only 36% of Democrats expressed the same level of concern.
