The Worldwide Investor

Britain, which has been in a bull market for the past 15 years, may be the most vulnerable country to the financial debacle currently going on in the world’s credit markets.

After years of mismanagement, the former giant regained its glory during the the late 80’s and 90s, by cutting down barriers to entrepreneurship and decreasing taxes. The policies led to a boom in the financial sector, which has made London a magnet for the investment community across the globe. Stock exchanges such as AIM have allowed worldwide companies to go public at a fraction of the cost compared to the United States and with far less regulations. Many companies from Eastern Europe and Asia have used London as their city of choice for financial arrangements. In fact, the financial industry in England has become so strong, that nearly 1 out of every 5 people work in the industry compared to 1 out of every 16 in the United States.

While those workers have benefited greatly over the past decade, their run looks to be in jeopardy. England is currently going through its worst housing market in many years, and companies have begun to delay their IPOs while mergers and acquisitions are coming to a screeching halt. With the industry in a mess, British consumer confidence has turned very negative and spending has slowed considerably. These factors may lead Britain down a path far worse than the rest of the world.