When you’ve got this –

“Only 23% Trust U.S. Financial System: Poll” (MarketWatch)

Americans are more distrustful of their financial institutions, according to a new poll that shows only 23% of those surveyed said they trust the country’s financial systems, down from 25% in June. The figures are from the quarterly Chicago Booth/Kellogg School Financial Trust Index, which measures trust in four areas: banks, the stock market, mutual funds and large corporations. “The findings in this issue reflect what’s been reported in the news and demonstrate the fragility of trust many Americans still have in the institutions where they invest their money,” said Luigi Zingales, a finance professor at the University of Chicago Booth School of Business and co-author of the index. –

this –

“Demand for Cash Shows No Signs of Fading” (Real Time Economics)

Cash may no longer be king, but it’s looking like good old paper money has a solid future in front of it, a study from the Federal Reserve Bank of San Francisco argues.

The report, released Monday and written by Jeremy Gerst and Daniel Wilson, argues that the proliferation of electronic payment methods isn’t dislodging a continuing strong interest in cash. You may be able to pay for coffee with a credit card these days, but even so, paper money will be sticking around much as it always has for years to come.

“Demand for U.S. currency — cold, hard cash — shows no sign of fading,” the analysts wrote. “Alternative payment technologies have tended to keep cash growth in check, but other factors have more than offset this. Over the next 10 years, cash volume is projected to grow 1.7% per year,” they noted. –

and this –

“Credit Unions Seeing Surge In New Accounts” (Consumerist)

As you may have heard, more than a few people around the country have been out and about in recent weeks in protest of — well, in protest of a lot of things. But what many of these people (and many of us who are sitting in our homes) share in common is that they’re fed up with the super-sized banks and are looking for alternatives. This appears to have led a growing number of people to the front door of their local credit unions.

The Navy Federal Credit Union, the world’s largest credit union with $46 billion in assets and 3.8 million members, tells ABC News it’s seen a threefold spike in new checking accounts since this time last year.

The chief executive officer of the Chicago Patrolmen’s Federal Credit Union, is seeing similar growth: “In October, we’re on pace to go about 40 percent above that in new checking account and debit card activity.”

“In our experience, this is new,” Karen Tyson, the National Association of Federal Credit Unions’ senior vice president for marketing and communications, told ABC News. “This is a different phenomenon. There seems to be quite a bit of distrust, quite a bit of apprehension, quite a bit of frustration among the average Americans out there with the larger institutions and the Wall Street institutions.” –

don’t seem surprising at all.

Category: Bailouts, Credit, Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “No Surprise: Distrust Leads to Money Moving”

  1. Paul S says:

    and yet some people feign ignorance about what OWS is all about.

  2. Rouleur says:

    …day-to-day cash transactions via the local credit union, duh…low cost transactions…np, been doing it for years…

  3. ilsm says:

    The conspiracies and unlawful assemblies in the federal reserve, congress, treasury and board rooms need the rubber bullets not honest American’s voicing their opinions.

    wall st has called “unsettled bets” assets, borrowed huge sums on those phoney “assets”, against the commonwealth and took down the middle class’ pensions and 401ks.

    Many, many trillions squandered in their usury schemes on the street?

    And their contriving lackeys want to steal health care and social security from the 99%.

    #OWS

  4. bear_in_mind says:

    Yep… count me amongst the crowd that’s moving most of my money from one of the largest, multi-national banks to a Credit Union before the end of the year.

    Since I’ve had my current account for 22 years, I’ll keep both open a little while to minimize the hit to my credit score (one of the few downsides) and ease the transitioning a couple auto-payments.

  5. Irwin Fletcher says:

    Competition is a great thing. We need more of it.

  6. Frwip says:

    High demand for cash. Interesting.

    I’m probably not a common case but there are a lot of small expenses I pay in cash, just as a matter of principle, and to keep the markedroids, data miners and similar pests away. They see the big checks and transfers but not much else. I don’t want to give my bank any more insight in my life than I can help. I just don’t trust them with that data.

    Dunno if it’s common.

  7. Greg0658 says:

    a spin off/on topic .. I see this ran in July but they recycled it yesterday .. $1 coins instead of $1 bills .. they missed a big elephant in the room ie: transfer of $1 from a private entity to a public entity
    http://abcnews.go.com/Politics/us-mint-wasting-money-making-money/story?id=14052997

    to come back on topic and spin all that is going on in finance … I wonder if the people of America have more* faith is the US FedReserve or the US Treasury .. or do they really want gold & diamonds** to make a come back

    codas:
    * – maybe more correctly WISH to have more faith
    ** – I think the worlds holders of our marks wish this or some other peg

    psst – maybe the general public doesn’t even understand the difference (I’m sure I still don’t have it all)

  8. ToNYC says:

    Needs continue to get filled away…. like water seeking downhill, above or below the radar. Time is of the essence when the lies begin to be exposed. Gold may change its numbers well when confidence fades, but it is a stoned wallflower when it comes to the dance of cash.

  9. Global Eyes says:

    Money might move, but debt stays right where it is.

  10. Jim67545 says:

    to Bear in Mind: Bank’s don’t report information on deposit accounts to CREDIT reporting agencies. So, closing your account won’t affect your credit score. (Nor will balances, overdrafts, debit cards, etc.)

    Worked for a small bank that, over the years, changed character from a “take care of our local neighbors” to “figure a way to take from the local population.” The change was gradual and arose as the institution became more quarter-to-quarter minded and top executives separated themselves from the common folk. Obscene executive pay contributes to this.

    Credit Unions are government subsidized in the sense that they are tax exempt. A smaller commercial bank, invested in it’s local market and mindful of the fact that it will rise or fall based on that market, is still a good choice and one which can lend to local businesses. Credit Unions are regulatorily quite limited in terms of the commercial loans they can make.

  11. rktbrkr says:

    I always see latinos paying in cash at supermarkets & Walmart that is completely understandable but why the tick up in cash volume for others?
    1) You’re getting zero on your savings, so why not.
    2) People on unemployment are working off the books and don’t want prying eyes
    3) Normal people don’t want prying eyes, I read where insurance companies were somehow getting access to credit card purchases and raising auto insurance rates based on your pattern of purchases. I guess they were looking for bar/restaurant purchases at night.Next step life ins cos data mining greasy food purchases!

  12. rktbrkr says:

    I opened a credit card account and now I’m opening a checking account at Penfed Credit Unit, the second largest. The credit card has a decent cash back feature that avoids games with airlines miles etc.I still have checking and HELOC with TD Bank, they still haven’t screwed up the consumer convenience that they inherited from Commerce. When I use my TD credit line I’m going to run my actual purchase activity thru the Penfed account right now TD sees too much with direct deposits etc.

    Penfed has some good rates and so does TD.At least TD is Canadian and not part of the BIG 4 corrupt cartel.

  13. gordo365 says:

    Just think what would have happened if they had shoveled $750B TARP funds to all the thousands of CUs and small banks instead of 20+ big banks.

  14. Greg0658 says:

    “decent cash back feature that avoids games with airlines miles etc” .. YA .. “they took our jobs” .. those jetsetters we subsidized .. in MORE ways than 1