Rowan Bosworth-Davies, Rowans Blog
All sort of explanations have been put forward to try and explain the 2008 financial crisis. Some of them have been almost unbelievably simplistic (most bankers are crooks – closer to the truth than most people care to imagine), while some of them have been irredeemably complex and opaque (anything written by Adair Turner)!
What no-one can deny is that the impact of the 2008 financial disaster has left most of us very much worse off, with very little sign of being able to enjoy a more benign financial stability for many years to come.
Some men and women have made significant fortunes out of the demise of the financial sector, many of them through schemes and designs which were purely criminal and which were designed to benefit them individually, at the expense of their clients, and shareholders. Investigations continue into the activities of HBOS, RBS and others. If you doubt the truth of this statement, recall Balzac; “…Behind every great fortune, there is a great crime…”
I have identified the year 1986 as the moment which saw a series of important, indeed, some would say, seminal moments, in the history of the development of fantasy financing, and opened a number of doors to providing opportunities for financial change. What was not realised at the time, except by a very small few, was that these changes, would in time, bring about the very destruction of the markets on which they depended.