It’s Financial Planning Week in the UK
But, meanwhile in Europe …
Whilst the benefits of financial planning are being promoted to individuals in the UK, it is clear that the €urozone would also benefit from some comprehensive financial planning.
The politicians are still “kicking the can down the road” and with Greece, Italy and now Spain changing the team at the top we wonder who is next for the chop?
Merkel, Sarkozy and Obama all face re-election in 2012 and it would appear that as a result, rather than deal with the unpleasant consequences of their plight, they are all avoiding taking the decisive action that is required.
As for the banks!
The 2007/8 financial collapse was triggered by banks financing poor quality, over-valued, mortgage backed securities that had a high likelihood of default. This time, banks have lent money to imprudent governments rather than individuals – perhaps evidence of the culture that exists within retail banks; one of short term profit over long term sustainability.
A plan of action
Firstly, there is a need to accept that the balance sheets of Europe’s banks (including those in the UK) are still in an unhealthy position.
There then needs to be an honesty session between Central Banks, regulators, politicians and bank shareholders, with all sides accepting that all of our futures are inextricably linked. Once a complete picture is established, those responsible could then develop a credible plan of action.
The wealthy investor’s dilemma
At FPC, we question why a wealthy investor would seek investment advice from a large bank, given their recent track record. There is a mistaken belief that they have extra special resources of global knowledge and expertise that others lack, yet we find no evidence to support it.
Do feel free to share your views and feedback, so we can end Financial Planning week with a round-up of your thoughts. Just email ku.oc.cpfnull@gniknihtprahs