PeoplesFinancials can provide a level financial playing field and economic security for the ordinary people of the world
The repercussions of the financial crisis of 2008 are deep and wide. People have lost their homes and jobs, have less income and fewer means of extending it. The credit crunch has affected, and is still affecting, economies around the world, causing social unrest and discontent. It is the person in the street who bears the brunt.
The public represents 90% of the money invested in capital markets, but ordinary people are now wary of entrusting their money to a system they do not understand. Till now, they have had to rely on the subjective ratings of the few agencies that exist and on the counsel of their financial advisors. Without the tools to properly assess the risk they run, investors are acting on little more than blind faith.
And it’s not just the small investor who is affected. It’s every person in the street. Economies depend on investments and capital markets, and volatility in the markets will undoubtedly increase with globalization, the evolution of technology, and the proliferation of more sophisticated products. Despite increased standards (MIFID), regulations (Basel II) and oversight councils, assessing risk remains the domain of the financial industry, and it will not take much to turn the public completely off investing.
The mere threat of such stagnation in trading activity would be enough to cause a total meltdown of our economic system. Only when the layperson benefits from an equal playing field with product issuers and investment banks, when s/he has access to objective evaluations and transparency, will the balance of power shift and the world become more stable.
The PeoplesFinancials Foundation is building on existing and proven IT tools to provide this access, and give more control to the consumer so that capital markets work for everyone.
How can you help? Read on.