What can we do to ensure that the credit crunch does not occur again?
The short answer is that we must all live within our means even if there is temptation to spread your wings and take on a little more debt that you feel comfortable with. We also need to understand that just because we have missed out on the start of an investment boom, in whatever asset class, it does not mean that we have to chase prices higher and higher.
However, there are many lessons to be learnt by the authorities including the need to regulate finance and industry a little more, watch out for the early warning signs and relieve some of the pressure off taxes when possible. The more you tax the consumer the more they will fight back when they actually have money. But if you keep income and taxes on a steady line then consumers are likely to be more sensible.
We also need to try and reduce the impact and control which fear and greed have in the investment markets of the world, while still allowing free markets - not an easy challenge. The best thing we can do is learn from this slowdown, teach the kids financial restraint at an early age and not get tempted to buy assets or investments which our heart tells us may be over valued.
Share this..
Related stories
SSE announce 4.1% gas price cut
26/01/2015 Gas and electricity company SSE has announced that they will be cutting gas prices in the UK by 4.1%, saving the average household around £28 a year. The energy supplier has become the latest out of the “big six” energy companies to cut gas prices, as a result of falling wholesale gas prices. Additionally, SSE said that they would extend their previous ‘price freeze’ f...
Read MoreBanks receive 21 million complaints in six years
26/11/2014 Banks have paid out a total of £38.5 billion in fines and compensation over the last 15 years, a joint study by Cass Business School and think tank New City Agenda concludes. Poor standards and mis-selling has lead to public mistrust of British banks, and the report showed that in the six years between 2008 and 2014, banks received a total of 21 million complaints. The fines...
Read MoreBarclays extends Smartphone cheque scheme
05/12/2014 One million more people will be invited to take part in a scheme, which allows people to pay a cheque into their bank account by taking a photo of it on their smart phone. Barclays, who are running the scheme, have only made this available to a few thousand customers so far, but plan on extending the scheme to one million more customers thanks to its success. Customers who ar...
Read MoreUK government figures show 562,000 job vacancies
As the unemployment rate in the UK continues to push higher and higher there is some concern about the quality and accuracy of the figures released into the public domain. It would appear, according to government figures, there are currently 562,000 job vacancies in the UK and while the number has fallen by 49,000 in the last quarter and 118,000 over the last 12 months this is still a substantial...
Read MoreIs the UK car manufacturing industry on the brink of collapse?
Amid claims that one of the U.K.'s largest car manufacturing plants is on the verge of collapse, the Unite union has today stepped in to try and pressurise the UK government into forwarding a life-saving rescue package. While the union has refused to name the plant at risk it has confirmed that upwards of 6000 jobs are potentially at risk. This is a direct consequence of the collapse in the UK car...
Read More