Is this the end of the free market?
Many experts believe that the events of the last 18 months could herald the end of the free market in the UK finance sector. Never before has one sector been proven to be so instrumental in the direction of an economy as the UK financial sector over the last few months. No future government in UK can really afford to give one area of the UK economy so much power and we could see the end of the free market as we know it. But where would that leave the UK economy?
One of the main attractions for overseas investors in UK has been the high degree of "self-regulation" and the low degree of formal regulations throughout the UK business arena. As these regulations look set to tighten over the next few years the chances are that the UK could become less and less attractive to overseas investors in the long term. When you also consider that the UK has not yet adopted the euro we could see a shift from those overseas investors looking at the UK to the European market.
While eventually the UK economy and the UK business arena will "forget about" the terrible ramifications of the ongoing credit crunch it would appear that in the short to medium term we could see some major changes in the way business is carried out in the UK.
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