I’ve been writing about the ramifications of the credit crunch ever since it began 14 months ago.

But this month, it really hit home.

First, two good friends of mine made headlines. Or rather, their employers did. He was at Lehman Brothers while she was at Bradford & Bingley. And no, neither of them were traders, making millions. They’re both just ordinary people, doing pretty ordinary jobs. Or they were….

Then my father, who’s in his early 70s, discovered his pension fund was haemorrhaging hundreds of pounds a week. He’d invested a lump sum six years ago into a complex financial product he didn’t understand but had read was safe. Needless to say, not on The Fool.

I felt terrible. At his age, he shouldn’t have any exposure to the stock market whatsoever. I knew this, being Foolish, but I’d never interrogated him about his finances – I’d never wanted to pry and I didn't feel I had the right. Stupid, stupid, stupid.

But at least I could help him now.

His top priority was to put the money somewhere safe, where its value would not be eroded. I cautiously recommended NS&I savings certificates, because they’re tax-free and guaranteed to beat the Retail Prices Index by at least 0.85%, so his investment would always stay ahead of inflation. And, of course, NS&I is backed by the Government, so its certificates are 100% safe.

He was really happy with this, and invested in a three-year certificate last week. Apparently, when the woman at the counter asked him why he had chosen that account, he replied proudly: “Because my daughter’s the deputy editor of The Motley Fool!”

I just hope his faith is not misplaced. And that I’m not cursed. I do have a couple of friends who work for Deutsche Bank. Maybe I better warn them…?



Edited at 2008-10-06 16:19:36