Too Big To Fail Banks Are Taking Over As Number Of U.S. Banks Falls To All-Time Record Low

Too Big To Fail Banks Are Taking Over As Number Of U.S. Banks Falls To All-Time Record Low

The too big to fail banks have a larger share of the U.S. banking industry than they have ever had before.  So if having banks that were too big to fail was a “problem” back in 2008, what is it today?  As you will read about below, the total number of banks in the United States has fallen to a brand new all-time record low and that means that the health of the too big to fail banks is now more critical to our economy than ever.  In 1985, there were more than 18,000 banks in the United States.  Today, there are only 6,891 left, and that number continues to drop every single year.  That means that more than 10,000 U.S. banks have gone out of existence since 1985.  Meanwhile, the too big to fail banks just keep on getting even bigger.  In fact, the six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.  If even one of those banks collapses, it would be absolutely crippling to the U.S. economy.  If several of them were to collapse at the same time, it could potentially plunge us into an economic depression unlike anything that this nation has ever seen before.

Incredibly, there were actually more banks in existence back during the days of the Great Depression than there is today.  According to the Wall Street Journal, the federal government has been keeping track of the number of banks since 1934 and this year is the very first time that the number has fallen below 7,000…

Unemployment to reach an all-time high in the Eurozone

Unemployment to reach an all-time high in the Eurozone

While there  is good reason to expect the Eurozone economy to recover over the next couple  of years, progress is likely to be very slow

  After falling by an estimated 0.5% this year, we expect GDP  to grow by about 1% in 2014 and then by some 1.5% a year in 2015–17. This would  mean that it would take eight years for the economy to regain its pre-financial  crisis peak level of GDP.

  Given the importance of exports to the recovery, we expect  manufacturing to enjoy a turnaround in fortunes, with output falling by 0.8% in  2013, but recovering to grow by 1.7% in 2014. We expect financial and business  to see an improvement; with output falling modestly, this year before  accelerating to grow by 1.3% in 2014 as business confidence strengthens.

  The outlook is weaker for other sectors, particularly those  exposed to the consumer and government sectors. We expect construction to  perform very poorly this year. We forecast output to fall by 3% as the  combination of a lack of finance for both public and private projects and the  continuing legacy of a long period of oversupply in a number of housing  markets.