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The Official Liz Truss no longer PM but still a Clusterfuck thread


Clown Job

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The Tory MPs in the hundred or so most marginal seats must be getting very worried by what is unfolding.  Many/most of them would have been Truss supports too.
The impact of what Truss and Kwarteng are doing will not be unwound quickly and I see suggestions today that house prices could fall by 10% to 15%; to many Tory voters that’s like slaughtering a sacred cow.
Now the IMF have weighed with unusually harsh criticism and Sunak’s predictions during the election are being quoted as a warning that was ignored, in yet Kwarteng is suggesting more of the same.  Could there be a Tory revolt?  It may be unlikely but we live in unusual times and it would be hilarious.
 
More likely there will be defections from those in red wall seats.
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11 minutes ago, Detournement said:

The Northern Rock comparison is totally bogus though and designed to mislead. They have lost money due to casino style investments and now want the government to make up the difference. The money printer is fine as long as it's going to the correct people. 

I also have my doubts about this. It seems more like a good excuse for more QE and to placate the institutions holding lower yield bonds.

I’m a little in the dark as to how these purchases will be organised but it looks like it will be auctions. So the bonds should be sold at market prices.
That won’t cover the loss for the funds, it will crystallise it. 
 

The funds won’t avoid losses here. They’ll be able to meet their cash demands and carry on as funds though.

The (realistic) alternative is that the fund goes into insolvency and has to sell its assets to raise cash. If there’s loads of funds doing this there won’t be many buyers and asset prices will crash. Some people may think that’s not a bad thing. It would be very disruptive to society. Again, some people may say that’s not a bad thing.

But the BoE has a mandate to stabilise the economy, so it can’t let the funds go insolvent.

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The Northern Rock comparison is totally bogus though and designed to mislead. They have lost money due to casino style investments and now want the government to make up the difference. The money printer is fine as long as it's going to the correct people. 
I also have my doubts about this. It seems more like a good excuse for more QE and to placate the institutions holding lower yield bonds.
You'd know all about Northern Rock . . .
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1 minute ago, DeeTillEhDeh said:
21 minutes ago, Detournement said:
The Northern Rock comparison is totally bogus though and designed to mislead. They have lost money due to casino style investments and now want the government to make up the difference. The money printer is fine as long as it's going to the correct people. 
I also have my doubts about this. It seems more like a good excuse for more QE and to placate the institutions holding lower yield bonds.

You'd know all about Northern Rock . . .

I was born in 1984. Why the f**k would I have been investing in banks when I was 22 years old or fucking posting about it. 

You had an argument on the internet with someone 15 years ago. Get over it. 

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21 minutes ago, coprolite said:

They’re a low risk asset in terms of their default risk.  The risk of losing capital on them has generally been quite low for years, but unpredictable inflation has increased that risk. 
 

The issue is that the funds have been buying them on margin, effectively borrowing money that they’ll repay out of the sale. The bond price has been hammered by sheer idiocy, so the value’s gone below a set % of the amount borrowed. The lenders are calling in the difference.  It’s very like negative equity on a mortgage with a different pattern of payments.

We'll never learn.

When we are speaking about gilts, it takes a certain stupidity to buy a "safe" asset on margin and continue to classify them as "safe"

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In what world will this sabotage create jobs? No one is going to be fucking buying anything since we won't have any money by the time the banks, the energy companies and the supermarkets are done rinsing everyone.

Debt collecting agencies maybe?

Screenshot_20220928-183916.thumb.jpg.5a088a6217464e4235c601746286a6d8.jpg

Edited by GiGi
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2 minutes ago, GiGi said:

Oh, and the wages you do get will be worth f**k all by the time the pound bottoms out. 

Can't wait for all these business opportunities.

Funeral directors and Sheriff Officers/Bailiffs will be rubbing their hands.

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17 minutes ago, superbigal said:

Where are all the back benchers who supported Rishi ?
Thought the told you so daggers would have been out by some of his supporters by now.
Has he made any statement ?

Sunak will have made a fortune from currency speculation and the ‘market volatility’ so he’s totally onside.

Here’s his statement:

BCA43AB7-1CB0-46B9-B01E-03687529D913.gif.833dfea11333938c40a71295bf1c4462.gif

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36 minutes ago, superbigal said:

Where are all the back benchers who supported Rishi ?
Thought the told you so daggers would have been out by some of his supporters by now.
Has he made any statement ?

 

All he's said so far is that he won't be attending next week's Tory Party Conference.

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