How to stop the panic
We get a lot of emails at MoneyWeek. In the past a large percentage of them have accused us of all sorts of terrible things – scaremongering, hating the property industry on principle, being solely responsible for the hideous recession about to hit the UK and so on. But times have changed. These days the contents of our inboxes mostly focus on just one thing: security. Which banks will go bust next? Just how secure is the government’s guarantee of Northern Rock accounts? What happens when a pension provider goes bust? Is it better to have money in an Irish bank or a UK-domiciled bank? Does cash held in Sipps get protected in the same way as actual investments do?
All these questions are relatively easily answered (except perhaps the first one), but together they sum up the problem at the core of the current banking crisis – confidence.
• Read the full editor’s letter here: How to stop the panic