Although the media news outlets are screaming The Sky Is Falling, nothing could be further from the truth.
Media are crying about 3 failed banks so far in 2023. Well, what they’re not telling you is that so far in this century, anywhere from 4 to 12 failed a banks a year is normal and par for the course. Don’t believe that? Well, check out this chart of Bank Failures directly from the FDIC:
As a matter of fact, in the Great Recession, there were 157 bank failures in 2010 and 564 bank failures from 2001 through 2023 to date. So don’t let 3 bank failures into the 2nd quarter of 2023 cause you any alarm.
Look at the FDIC chart above. On the far right is where we are right now, with 3 bank failures so far in 2023. That barely comes off the floor of the chart. In comparison, look at the middle of the chart (Great Recession) when 157 banks failed. We are no where near that level of bank failures. So don’t allow the media to manipulate your mind.
Why would media outlets want to advance the misconception that America is facing economic ruin? Mainly a couple of thoughts:
1. TO SELL MORE ADVERTISING AND INCREASE VIEWERSHIP.
this is the old news adage: instead of dog bites man, say “Man Bites Dog” and howl about it long and loud. It’s a load of hooey.
2. POLITICS.
The Left will blame the previous Right administration for laying the seeds of calamity and the Right will of course blame the current Left administration for their bad economic policies. So: stirring the political pot is another reason to improperly present the current minimal bank failures as a major issue. Welcome to Washington, DC.
BOTTOM LINE
there would have to be another 153 bank failures in 2023 to equal the Great Recession. let’s see: we are now in the 2nd quarter of 2023. At this rate, there might be another 3 to 5 bank failures this year. Even if there were 12 bank failures in 2023, that still wouldn’t be anywhere near what happened in the Great Recession.
So conduct your business as usual and don’t go crazy trying to buy gold. You will end up losing when you try to cash that in months or years later.