View more on these topics

Once upon a sub-prime time…

Once upon a time there was a fairy tale about a whole nation that was so stupid that when they were told that the king was wearing fabulous clothes, although in fact he was naked, did not want to appear to be the odd one out and seem daft so they pretended to see these wondrous clothes.

However, a small boy who did not need to be one of the crowd spoke out to say that the king was indeed naked and he was ridiculed by everyone. As we know, he was right, of course, and eventually everyone came to believe him.

Some years ago, major insurance companies rushed headlong into buying estate agency practices at highly inflated prices? As we all know, the bubble went pop and they all lost a fortune, not their own money but that of shareholders and with-profits policyholders.

After a while, the chaps who sold them these businesses bought them back at much lower values and carried on as before.

Recently, a bunch of greedy bankers heard that you could get higher rates of interest by lending to people who normally would find it difficult to get a loan, the so-called “sub-prime”. They all rushed headlong into this one as well. It seems that a lone voice, not that of a little boy this time, questioned this.

We all know what happened next. You would hope that lessons have been learned this time but I expect not.

Mel Boustead

Barbican Independent Financial Advisors

Peakirk

Peterborough

Recommended

Pensions Dashboards around the World

Steve Webb’s latest policy paper British savers risk being left in the ‘slow lane’ unless the UK Government takes a more active role in ensuring the successful delivery of a Pensions Dashboard. The report, ‘Pensions Dashboards around the World’, coincided with a major conference that was held on Monday 16 May and brought together experts […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com