Despite Positive Indicators, Overall Trust in America's Financial System Hovers at 22 Percent
Chicago Booth/Kellogg School Financial Trust Index also finds average Americans and top economists have different views on economic policies

May 2, 2012 – The latest issue of the Chicago Booth/Kellogg School Financial Trust Index finds that only 22 percent of Americans trust the nation’s financial system. Yet, according to the March 2012 report released today, fewer people fear a large stock market drop, there is a slight uptick in trust in banks, and Americans are more confident about home values increasing compared to three months ago.

“This quarter we also saw an increased appetite for financial risk,” said Luigi Zingales, co-author of the Financial Trust Index and the Robert R. McCormack Professor of Entrepreneurship and Finance at the University of Chicago Booth School of Business. “Although some areas of the study show a drop in trust – with some components hovering at very low levels – 25 percent of people surveyed demonstrated a willingness to make potentially high-yielding investments despite higher risks.” 

Trust in the stock market, mutual funds and large corporations all dwindled slightly in this survey, but trust in banks rose by two percentage points to 32 percent. On housing market expectations, 32 percent of respondents believe housing prices will increase in the next 12 months (compared to 26 percent in December 2011). However, the number of people who say they know someone who strategically defaulted on their mortgage rose to 37 percent from 32 percent in December 2011.

The Chicago Booth/Kellogg School Financial Trust Index measures public opinion over three-month periods to track changes in attitudes. Today’s report is the 14th quarterly update and is based on a survey conducted in March 2012.

Wave 14 Results