Why crash time?

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I have already mentioned this morning that I think we remain at risk of another financial crisis. Let me offer another reason for thinking so.

The Times carries a headline article today behind its paywall that suggests one third of ABC1 earners could not meet an unexpected £500 bill without resort to borrowing and that this rises to 46% in the case of C2DE earners.

It is always wise to take these findings with a pinch of salt but my own experience from my practicing years suggests this is likely to be true. I reckoned only 20% or so if my clients were inclined to, or were even capable of saving.

A number of thoughts follow. First, let's not pretend in that case that we are not remarkably close to a debt precipice that any change in rates or impact on the cost of living could trigger. Those voting Brexit in these groups, please note.

Second, this indicates staggering wealth inequality with massive real consequences for well-being. The stress inherent in this statistic is staggering.

Third, this data clearly indicates a country unable to take risk.

And fourth it may indicate a country that is underpaid.

Or one where the pressure to consume is so great it is imoiverishing people (and both these last statements can be true, independently and simultaneously).

However looked at this suggests we have the most extraordinarily thin margins for error and that is what turns crises into crashes.