Wednesday, July 08, 2009

Warning: This mortgage could seriously damage your wealth..

From here:

Alistair Darling will sketch out plans tomorrow for a health warning system for financial products as the government seeks to show that consumers will benefit from the Treasury's wide-ranging revamp of the banking industry.

Alistair, all I can ask is: WHAT THE HELL WERE YOU THINKING!!?

When faced with a gigantic problem of a nation with huge amounts of consumer debt, driven by excessive marketing of financial products you do not go for a solution that:

  1. Duplicates existing regulation - Most financial products already require quite the seller to make quite clear exactly what they are buying into.

  2. Will not be particularly effective - Is a government health warning really going to drive home the financial consequences of, say, taking out a mortgage.

  3. Reinforces the exisiting, patronising nanny state image of this government.

I'm not sure what to say except this is a really stupid idea.

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