The consensus among public officials and financial experts that the U.S. economy is gradually recovering maybe too optimistic. There are emerging signs in the stock market that the U.S. economy is about to face financialheadwinds that may lead to another credit crisis and recession next year. The recent volatility in bank stocks is asignal that U.S. banks, large and small, are not as healthy as many analysts assume.
Banking is a game of confidence. So if the investing public is uncertain about the health of bank balance sheets,its uncertainty can turn into fear, setting the stage for a banking panic.
