As the US economy continues to recover, banks have reported spectacular profits in 2021. ... But consumer banking revenues declined 3% in Q2 2021 from the prior quarter and was down 7% from the same period a year ago.
A recession will come to the United States economy, but not in 2022. ... The downturn won't come in 2022, but could arrive as early as 2023. If the Fed avoids recession in 2023, then look for a more severe slump in 2024 or 2025.
The Conference Board forecasts that US Real GDP growth will rise to 6.0 percent (annualized rate) in Q4 2021, vs. 2.3 percent growth in Q3 2021, and that 2021 annual growth will come in at 5.6 percent (year-over-year).
The four banks with the largest number of banking-only complaints included Bank of America with 3,292 complaints followed by JP Morgan Chase (2,769), Wells Fargo & Company (2,324) and Citigroup (1,083).
Runs still happen from time to time
There were some incidents during the financial crisis that could be called bank runs, depending on your perspective, Levine says. For instance, there was a run on money market mutual funds, or MMFs, that ended with the federal government stepping in to guarantee their value.
Washington Mutual was a conservative savings and loan bank. In 2008, it became the largest failed bank in U.S. history. By the end of 2007, WaMu had more than 43,000 employees, 2,200 branch offices in 15 states, and $188.3 billion in deposits. 1 Its biggest customers were individuals and small businesses.
In 2020, there were just four bank failures in the U.S., despite the extraordinary economic circumstances. Only about 5% of banks nationwide were unprofitable, according to data from the Federal Deposit Insurance Corporation, and about 53% of banks reported annual increases in profits in 2020.
The FDIC, or Federal Deposit Insurance Corporation, is an agency created in 1933 during the depths of the Great Depression to protect bank depositors and ensure a level of trust in the American banking system.
How often do banks fail? On average, roughly seven banks go out of business each year. Four banks failed in 2020, only one fewer than in 2019. Impressively, no banks folded in 2018, although it was only the third year since 1933 without a single bank failure.
Whether you want to hear it or not, the truth is that the banks are in bed with the government and although the government tells the banks to “treat people fairly,” they continue to steal your money, while greedily taking money from you (via the government and your tax dollars) at the same time.
Savings accounts are a safe place to keep your money because all deposits made by consumers are guaranteed by the Federal Deposit Insurance Corporation (FDIC) for bank accounts or the National Credit Union Administration (NCUA) for credit union accounts.
The first is society's lack of understanding of banking and bank operations, a concern exacerbated by banks' lack of transparency and a history of profiting on information asymmetry. The second is a fundamental distrust of banks as a result of a history of predatory behavior.
If the U.S. economy collapses, you would likely lose access to credit. Banks would close. Demand would outstrip supply of food, gas, and other necessities. If the collapse affected local governments and utilities, then water and electricity might no longer be available.
House price growth typically slows or drops when the economy does poorly. This is because a recession leads to job losses and falling incomes, making people less capable of buying a home.