Survey: Fewer than 1 in 4 trust financial system
A new survey found fewer than one in four Americans trust the financial system and that confidence in large banks is eroding.
The latest quarterly survey issued Tuesday by the Chicago Booth/Kellogg School says the 21 percent of respondents who said they trust the system is the lowest level since the school's March 2009 poll, taken as the global economic crisis unfurled.
The percentage of people who trust banks that operate across the U.S. fell to 23 percent from 25 percent in March. Trust in small community banks, on the other hand, rose to 55 percent from 51 percent, while confidence in credit unions rose to 63 percent from 58 percent.
The survey by telephone of 1,029 people was conducted from June 20 to June 28.
That was after news emerged in mid-May of a multibillion-dollar trading loss at JPMorgan Chase & Co., the biggest bank in the U.S.
It also found that the percentage of people who have trust in the stock market was 15 percent, unchanged from the March survey. Trust in mutual funds fell to 25 percent from 28 percent while trust in large companies edged up to 15 percent from 14 percent.
The majority of those polled said they have a neutral view of the stock market, with 80 percent planning to keep their investments in the market as they are. More than half the respondents said they believe a market collapse — a drop of more than 30 percent — is unlikely to occur within the next 12 months.
The latest quarterly survey issued Tuesday by the Chicago Booth/Kellogg School says the 21 percent of respondents who said they trust the system is the lowest level since the school's March 2009 poll, taken as the global economic crisis unfurled.
The percentage of people who trust banks that operate across the U.S. fell to 23 percent from 25 percent in March. Trust in small community banks, on the other hand, rose to 55 percent from 51 percent, while confidence in credit unions rose to 63 percent from 58 percent.
The survey by telephone of 1,029 people was conducted from June 20 to June 28.
That was after news emerged in mid-May of a multibillion-dollar trading loss at JPMorgan Chase & Co., the biggest bank in the U.S.
It also found that the percentage of people who have trust in the stock market was 15 percent, unchanged from the March survey. Trust in mutual funds fell to 25 percent from 28 percent while trust in large companies edged up to 15 percent from 14 percent.
The majority of those polled said they have a neutral view of the stock market, with 80 percent planning to keep their investments in the market as they are. More than half the respondents said they believe a market collapse — a drop of more than 30 percent — is unlikely to occur within the next 12 months.
These rapaciously mendacious Wall Street psychopaths can't fix the problems they've created because theirs are the minds that created them.
They cant even see the problem so in their hopelessly conflicted worldview no solution is needed.
"Just leave us alone, we'll self-regulate, government has no place in business...".
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TBTF=2big2manage = 2big2exist.
When "corporattions are people" and "sheeple are muppets". We're doomed.
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What so good about those banks ? They are using their customers' money to make money and then,
turn around ripping them off !
A sample size of 1,029 people will definitely not going to show the whole picture
25% of the US population is that stupid...we really are in a world of hurt.
 @CrimsonkidIf you hear some of the excuses used by the people that refuse to leave the big banks you will know that they are indeed stupid. Reasons like, "My checks are now numbered in the thousands, I don't want to start over." And, "But then I would have to change all my direct deposits and automatic withdrawals."
Cheats.
...and the bankers are saying, 'so? so, what...'
I absolutely LOVE my credit union. Got fed up with BoA and their sneaky "just because" fees years ago - switched and never looked back.
Seems like a nice day to read a book....
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Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street
     by Neil Barofsky
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Released today.
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Article by author:Â Â http://www.bloomberg.com/news/2012-07-22/bungled-bank-bailout-leaves-behind-righteous-anger.html
What a bunch of alarmists we have here ........... the banks have to function in the world economy just like the little guy does. When the going gets rough is not a time to turn on our institutions for the blame.
1 in 4 still trust the financial system???? Do they think Santa still exists too?
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While saving to buy a house I 'invested' with E.Jones. After 3 years I went to use it and it was about $200 less than the total I put in. I literally would have been better hiding it under the mattress.
Lots of reasons to distrust the banks. Lots of embedded links here to read more.
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http://www.ritholtz.com/blog/2012/07/are-big-banks-criminal-enterprises/
Let's go back to the gold standard...
Duh! I have moved my accounts to a credit union.
 @Darn it! Smart move! You won't get much in the way of interest but at least you won't be nickeled and dimed by fees.
 @Furd Exactly. Sounds like someone who is doing the same thing. I also moved my autopays and got rid of credit cards attached to large banks. Big bangs are no longer in my world!
 @Darn it! I have used credit unions exclusively for more than 20 years. I can't think of any reason why an average individual would need the services of a commercial bank or even a savings & loan association.
If you're at a small local bank or credit union you're reasonably safe. Get out of the big banks. Evidence is everywhere about how corrupt they've become. Still no charges to the people that caused the reccession. So only an idiot is investing on wall street these days. The repeal of Glass/Steagal is what lead to most of this. Capitalism has to be regulated, otherwise they just steal everything they can get their hands on.
Can anyone blame us? The world's financial systems are teetering on collapse, the world's mega-rich have accrued the vast majority of the world's wealth. In the US the banks are screwing the average American every chance they get and we are helpless to defend against it. The government will give lip service, but won't do squat. The gap between the rich and the middle class is ever widening. I don't know about you but I for one am not afraid to call it what it is and it is class warfare, pure & simple.
Let's not forget that the Republicans want to give those rich getting richer people tax breaks because they create jobs. Sure they do.
...The latest quarterly survey issued Tuesday by the Chicago Booth/Kellogg School says the 21 percent of respondents who said they trust the system is the lowest level since the school's March 2009 poll, taken as the global economic crisis unfurled. The percentage of people who trust banks that operate across the U.S. fell to 23 percent from 25 percent in March...
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The stats are actually worse than that. When you look at survey data over a 100% spectrum, you will have a group of outliers on each end. You'll have 5% to 10% that will ALWAYS trust banks even if they saw with their own eyes bankers throwing hundred dollar bills into burning barrels and shooting homeowners one by one for the contents of their homes. Likewise there are 5% to 10% who will always distrust the banks even if they were as open and transparent and would let them walk in and follow the money literally to solve and fear.
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When you chafe out the outliers - you're really left with just 11% that still trust our financial institutions.
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Our economy is broken, something needs to happen to fix it. The banksters should be thrilled that the Tea Party got hijacked by the Republican party, and has become sadly the lap dog of the banks, and that Occupy was taken over by a bunch of anarchist nutters who's only solution is to break windows in the middle of the night.
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If the two sides ever realized they agree on 90% and kicked out the Republicans on the right, and the anarchist nutters on the left...the finance system would have a real pissed off third party on their hands demanding real reform.
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But that's OK, there is an inter-racial gay couple getting married, and one of them is getting an abortion and the other is holding an assault weapon. Please, be distracted by non-issues while we continue with our regular scheduled screwing over of the average citizen.
I am one of these 1 in 4. I left wells fargo and moved everything to my credit union last year.
That's because people like Barney Frank and Chris Dodd are in the pockets of the financial industry.Â
 @GeorgeG. Yes, if we only had LESS rules it would all be better.
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/roll eyes
Fewer, but simple, rules and consistently and vigorously enforce them.  Fraud hides within large and complex sets of rules.    For example, A simple rule defining Fraud, and setting down severe penalties for it, with demonstrated enforcement, would have stopped a lot of what has damaged our economy over the last 20 years.
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Glass-Steagal was 13 pages, IIRC. It worked.  The Dodd/Frank rules are how many pages? Do you think they wrote themselves some loopholes inside that?
Yes. Too much of the "End Capitalism" calls also. Capitalism works, but must have rules, and penalties for breaking them, and must have a disinterested 3rd party to preside over (government). Unfortunately, the latter has been captured, and the rules have been neutered because they are now written to protect the establishment. Too many current regulations are designed to create a huge barrier to entry for any new competition (just look at any that are loudly supported by the industry being regulated).  A lot of the penalty side is made up of fines, amount codified in law, and are a mere rounding error to the major players (and a death sentence to the small ones). Penalties for some violations need to be measured to the market value of the violator such that they will actually sting.
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 @georgef Ahhh, that's different. You and I are on the same page. I am all for simplified regulation with loopholes closed. Complete agreement. Ditto for the tax code. So I apologize - you have to admit, there is a group of people who are very vocal that insist that if government just got out of the way of banks, none of these problems would exist. I am 100% all for Glass-Steagal (with some minor modifications to support 21st century banking technology) being restated.
 @GeorgeG. What does Dodd/Frank have to do with this story?Â
@206_Assaulter @GeorgeG. http://bubblemeter.blogspot.com/2008/10/barney-frank-and-christopher-dodd.html