Jump to content

The Official Liz Truss Clusterfuck PM thread


Clown Job

Recommended Posts

1 minute ago, flyingscot said:

I feel Kwasi would have gone in normal circumstances, but he's just in the job and so won't resign and Truss is 'all in' with this so similarly can't fire him.... A mess. 

 

Indeed.

Truss made it perfectly clear all through ler leadership campaign EXACTLY what her intentions were. She has no one to blame but herself.

Link to comment
Share on other sites

5 minutes ago, flyingscot said:

I feel Kwasi would have gone in normal circumstances, but he's just in the job and so won't resign and Truss is 'all in' with this so similarly can't fire him.... A mess. 

This is being presented as a crisis but the people who actually matter are getting lower taxes, higher interest rates and higher bond yields ie everything they want. 

Once all that is established the media will turn down the fear dial.

Link to comment
Share on other sites

3 minutes ago, Detournement said:

This is being presented as a crisis but the people who actually matter are getting lower taxes, higher interest rates and higher bond yields ie everything they want. 

Once all that is established the media will turn down the fear dial.

 

 

The people who actualy matter?

Aka... These utterly greedy, self serving, right wing Tory c***s. 

 

Link to comment
Share on other sites

1 hour ago, Detournement said:

Image

Ok so not actually a run on pension funds just a short term loss on bad investment strategy.

Sounds a bit like a run. 
 

demand for cash from creditors? Yep

caused by lack of confidence in assets backing credit? Yep

Vicious Circle? Yep

 

There’s a legitimate question as to whether pension funds should be allowed to take on this sort of risk (to which the answer is of course they shouldn’t). 
 

There’s also a legitimate question as to whether this is actually true and not a smokescreen.

 

If it is factually accurate, I don’t think the BofE has any option but to inject liquidity. The sheer scale of pension funds would mean that any significant ones going bust would have massive unpredictable effects on the economy. 

But if we’re doing free markets, it’s just creative destruction and survival of the fittest. Really, Kwasi should be stopping the state from interfering here.

Link to comment
Share on other sites

2 hours ago, MuckleMoo said:

Has anyone in politics, both domestic and internationally, made such a rip roaring c**t of it in such a small amount of time of being leader? Genuine question.

She's pretty much done what she said she would during her leadership campaign so it's not really fair to criticise her for absolutely fucking the entire country. It's the fuckers who listened to her and thought "I'll have some of that" and voted her in who should be getting skewered. 

She's an absolute moron surrounded by thieving arseholes. Anyone seen Rees Mogg? 

 

 

Link to comment
Share on other sites

2 hours ago, MuckleMoo said:

Has anyone in politics, both domestic and internationally, made such a rip roaring c**t of it in such a small amount of time of being leader? Genuine question.

Outside of South America and Africa, honestly, no.

Link to comment
Share on other sites

7 minutes ago, coprolite said:

There’s a legitimate question as to whether pension funds should be allowed to take on this sort of risk (to which the answer is of course they shouldn’t). 

Would buying UK Government bonds not be considered a low risk investment in normal times? (I'm ignorant about this stuff.)

Link to comment
Share on other sites

9 minutes ago, coprolite said:

Sounds a bit like a run. 
 

demand for cash from creditors? Yep

 

There’s also a legitimate question as to whether this is actually true and not a smokescreen.

 

If it is factually accurate, I don’t think the BofE has any option but to inject liquidity. The sheer scale of pension funds would mean that any significant ones going bust would have massive unpredictable effects on the economy. 

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.

Link to comment
Share on other sites

13 minutes ago, TxRover said:

Better call them up, as they’ve intervened today to support the Pound…

They’ve not intervened in currency markets have they?  
 

And buying bonds increases money supply so will be a downward pressure on exchange. 
 

I guess their stability mandate could cover exchange rates and there could be an element of confidence in the currency price, but it’s hard to see todays wiping of the government’s shitey arse as a currency intervention 

Link to comment
Share on other sites

12 minutes ago, welshbairn said:

Would buying UK Government bonds not be considered a low risk investment in normal times? (I'm ignorant about this stuff.)

It is low risk. 

The problem is that if you own a 30 year UK government bond at 1% no one is going to want to buy it off you if the government are selling new bonds at a higher yield. 

Edited by Detournement
Link to comment
Share on other sites

4 minutes ago, welshbairn said:

Would buying UK Government bonds not be considered a low risk investment in normal times? (I'm ignorant about this stuff.)

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.

Link to comment
Share on other sites

  • Clown Job changed the title to The Official Liz Truss Clusterfuck PM thread

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...