Findings from a Maritz® Poll indicate that consumers continue to view the economy with a sense of resignation and skepticism, but signs of a recovering psyche are emerging. A telling sign of the cloud hovering over the mood of the country is the lack of confidence among adults that they will be able to realize the "American Dream" of providing a better life for the next generation.

The results of this recent poll, conduct by Maritz Research among about 2,500 people across the nation, indicate that nearly 60 percent of Americans are not confident they can produce a better life for their children. This downcast feeling is further reflected in people’s perception of the economy; two-thirds consider the economy to be in poor shape and more than 70 percent believe the economy "will get worse before it gets better." On a positive note, nearly half (48 percent) of Americans believe the economy will be stronger once we get through the crisis, but concede it will take at least three years for a meaningful recovery.

Consumers’ view of the stability of the banking system remains bleak and has become increasingly uncertain since Maritz conducted its first wave of economic perception research immediately preceding the November 2008 presidential election. Nearly two-thirds (64 percent) consider the banking system to be unstable and 74 percent believe another major American bank will fail within the next year. Despite this lack of confidence in the banking system, consumers still have faith in their own banks. More than three-quarters (76 percent) of Americans believe their bank will survive the crisis and 78 percent trust their bank and feel like they are respected as customers.

"While seeking to restore confidence and trust in the financial system, banks and other financial services firms have an opportunity to distinguish themselves in the eyes of their customers," said Rich Brose, director of research consulting for Maritz Research’s financial services research group. "Banks should seize hold of this thread of opportunity and ensure that their communications, actions, and customer experience reinforce this confidence."

Nationalization is Not Welcome, but is Considered Likely

As the crisis worsens, talk of the government taking complete ownership of banks intensifies. When asked, only 25 percent of Americans favor the government nationalizing financial institutions rather than letting them fail. Nonetheless, two-thirds of the people believe the government will nationalize a bank. To make matters worse, people are angry that the financial industry required a bailout; more than half (55 percent) think banks are benefitting unfairly from the bailout and few (14 percent) believe banks are using the bailout funds to help solve the crisis. It should come as no surprise then that 58 percent of Americans believe tighter regulation of the financial services industry is needed to resolve the crisis.

People Blame Banks and The Government

Americans across the board are angry about the situation the country finds itself in, and they blame both banks and the government for the crisis. Although only 40 percent of the people believe the government is doing what is necessary to stimulate the economy, the Obama Administration is receiving high marks for its contribution to resolving the crisis (59 percent rate its efforts good or better) and more than half believe the Mortgage Relief Plan and Economic Stimulus Package will help stimulate the economy. Americans place most of their faith for recovery in the continuation of low interest rates, as 76 percent believe low interest rates will stimulate the economy.

Generations Differ

The generations view the crisis very differently. "Seniors have lost their optimism,"” observed Brose. “When we conducted the first wave right before the election, seniors considered the economy to be healthier than did the other generations and they believed it was as bad as it was going to get. That is no longer the case. Moreover, seniors are the least likely to believe the government is doing what is necessary to stimulate the economy and they are doubtful that their personal finances will ever fully recover.”

Boomers are also afraid their personal finances will never fully recover and are concerned about their ability to retire when they had planned. Members of Gen X rate the U.S. economy lowest, but believe that bank failures are behind us. They are most concerned about being able to support their family’s basic needs. Gen Y is the most optimistic generation. The Gen Y population thinks the economy is as bad is its going to get and expects the most positive impact from the Obama Administration. Their concerns revolve around their ability to get credit, pay for college and buy a house.

Looking Ahead

When asked to assess the impact of various factors on the economy over the next three years, consumers are becoming more upbeat. "While Americans still believe the financial crisis, inflation, and energy prices will hinder the economy over the next three years, they believe the impact of these factors will not be as bad as they did in November of last year," commented Brose. "Moreover, the Obama Administration, interest rate changes and the anticipation of a rebounding housing market are all expected to positively impact the economy over the next several years."