From “Depression-Era Bank Failures: The Great Contagion or the Great Shakeout?” John R. Walter. Date Written: 2005
Now let us travel forward in time.
Today we only have 4650 banks
And a population 3 times larger.
To put this into perspective, in 1920 there was only 3483 people per bank, but now we have 70 000 people per bank. That is a big difference.
Below is a picture of the total interest income for all commercial banks in the United States.
In 2018, banks made 500 billion in interest! That’s almost as much as the entire military budget for the United States, and they spend more than every other country combined!
What is even more shocking is the fact that 39% of total bank assets are concentrated into only 4 companies. We took screenshots of the interest income from their 2018 annual reports
Citigroup Inc [ formerly Travelers Group Inc ]
That adds up to 280 billion. Just to put this into perspective, there is a total of 22 million companies registered in the United States.
How far have we come? What will it be like in 40 years? Will we only have 1 bank? Or maybe 2 like in politics. Or will it still be 4..
Only time will tell