It is unfortunate that the NYT article Mike posted here (9:40 14/07/02
-0400) gives no clue as to the real reason why so many older people are now
finding that their pensions and investments are either much reduced or, at
worst, almost at vanishing point. As one or two FWers have commented
recently, this is working up to be a scandal that might blow several
administrations out of the water in the coming year or two -- particularly
if (as I expect) the stock market declines further.
The reason must be well-known to those in the retail financial services
sector but is scarcely ever mentioned publicly. In all the hundreds of
thousands of words I've read in the financial press in the last few years
during the stock market boom I've only come across one mention of this.
Very recently, I read: "Financial investments are unlike other investments
such as property. They need constant servicing."
"Constant servicing" This is a euphemism for share-churning! It is a
description of what pension funds, investment funds and insurance companies
have been doing increasingly in recent years -- and why they are now
finding themselves in deep trouble, not to mention the millions of ordinary
people who have already lost large chunks of their lifetime savings.
Keith Hudson
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Keith Hudson, General Editor, Handlo Music, http://www.handlo.com
6 Upper Camden Place, Bath BA1 5HX, England
Tel: +44 1225 312622; Fax: +44 1225 447727; mailto:[EMAIL PROTECTED]
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