Gritstone Ram Posted September 28, 2022 Share Posted September 28, 2022 15 minutes ago, sonofmidnight said: I was so incensed by the mini budget I fired off a letter to my Conservative MP. Not only is it morally wrong but it is looking increasingly like a financial disaster. Not only that but the Conservatives have manged to committ electoral suicide by alienating the tradionally Labour voters who voted for Boris in the last election. Please if you feel strongly about this send an e.mail to your MP. Thanks. I was thinking the same. No one voted for this. sonofmidnight 1 Link to comment Share on other sites More sharing options...
sage Posted September 28, 2022 Share Posted September 28, 2022 (edited) 55 minutes ago, sonofmidnight said: I was so incensed by the mini budget I fired off a letter to my Conservative MP. Not only is it morally wrong but it is looking increasingly like a financial disaster. Not only that but the Conservatives have manged to committ electoral suicide by alienating the tradionally Labour voters who voted for Boris in the last election. Please if you feel strongly about this send an e.mail to your MP. Thanks. I won't complain about this Edited September 28, 2022 by sage Stive Pesley, Ramarena and Eddie 1 2 Link to comment Share on other sites More sharing options...
Rev Posted September 28, 2022 Author Share Posted September 28, 2022 It was all worth it for yesterday's Daily Star headline. HONEY, I SHRUNK THE QUIDS. RoyMac5, angieram, Comrade 86 and 5 others 8 Link to comment Share on other sites More sharing options...
sonofmidnight Posted September 28, 2022 Share Posted September 28, 2022 1 hour ago, sage said: I won't complain about this Me neither but it is worrying that they haven't the intelligence to realise the implications for their own party. Either that or they don't care which seems weird. Tamworthram 1 Link to comment Share on other sites More sharing options...
Wolfie Posted September 28, 2022 Share Posted September 28, 2022 The Bank of England have had to step in with a load of new money in order to calm markets down. Hopefully it will help relieve anxiety for mortgages etc but surely Kwarteng can't survive this now?! Link to comment Share on other sites More sharing options...
Tamworthram Posted September 28, 2022 Share Posted September 28, 2022 16 minutes ago, sonofmidnight said: Me neither but it is worrying that they haven't the intelligence to realise the implications for their own party. Either that or they don't care which seems weird. Never thought I'd say it: Bring back Boris. Only kidding ? Link to comment Share on other sites More sharing options...
SSD Posted September 28, 2022 Share Posted September 28, 2022 (edited) Was listening this morning to a chap who was on the board of the monetary policy committee, the big boy economists at the bank of England. He said bluntly that this mess was caused amateurs (Mr Kwarteng and co) who haven't a clue what they are doing and their idea of lowering taxes of the richest 1% to restart growth was "cloud cuckoo land." This isn't some old boy down the pub having a moan, it's a well respected professor of economics. Kinnell fire. This has nothing to do with politics, it's the basics of being competent at your job. The fact everyone hated this idea, including the financial experts in the city, shows how laughable this has become. Edited September 28, 2022 by SSD RoyMac5, Reggie Greenwood and ariotofmyown 3 Link to comment Share on other sites More sharing options...
Gee SCREAMER !! Posted September 28, 2022 Share Posted September 28, 2022 13 minutes ago, SSD said: Was listening this morning to a chap who was on the board of the monetary policy committee, the big boy economists at the bank of England. He said bluntly that this mess was caused amateurs (Mr Kwarteng and co) who haven't a clue what they are doing and their idea of lowering taxes of the richest 1% to restart growth was "cloud cuckoo land." This isn't some old boy down the pub having a moan, it's a well respected professor of economics. Kinnell fire. This has nothing to do with politics, it's the basics of being competent at your job. The fact everyone hated this idea, including the financial experts in the city, shows how laughable this has become. I believe he has PhD's from Harvard and Cambridge in economics and was a financial analyst for JP Morgan. As such, I thought he may be better qualified than a few of the recent incumbents. Appears he hasn't a grasp of the basics of economics as I worked out these issues before the ink was dry. He clearly ain't that dull though and I suspect this was signed off as a sweetener in return for votes for Truss and securing his position. May not be in it long. Link to comment Share on other sites More sharing options...
Grumpy Git Posted September 28, 2022 Share Posted September 28, 2022 Any one who thinks the right-wing UK press (Express / Mail) isn't controlled by unseen backroom forces behind the Tories must be blind. Link to comment Share on other sites More sharing options...
Stive Pesley Posted September 28, 2022 Share Posted September 28, 2022 37 minutes ago, Gee SCREAMER !! said: I believe he has PhD's from Harvard and Cambridge in economics and was a financial analyst for JP Morgan. As such, I thought he may be better qualified than a few of the recent incumbents. Appears he hasn't a grasp of the basics of economics as I worked out these issues before the ink was dry. He clearly ain't that dull though and I suspect this was signed off as a sweetener in return for votes for Truss and securing his position. May not be in it long. It's a product of the fact that Tory in-fighting has handed the reins to what would have once been described as the fringes of the party Therefore they are Macaulay Culkin in Home Alone, unable to believe they are in charge and can finally do all that daft stuff the grown-ups wouldn't let them do! A more serious take is that it's the mirror image of what happened with Labour and Corbyn. Members got fed up of centrism not working and looked to the fringes of the party for a change. Had Corbyn become PM, he would have enacted an equally unprecedented, unorthodox and ambitious fiscal program - that would have quite likely had the same impact on the markets. The difference being that his plans would have benefitted the majority on the lower rungs rather than the minority at the top. And so the powerful at the top made sure that never happened angieram and ariotofmyown 2 Link to comment Share on other sites More sharing options...
ariotofmyown Posted September 28, 2022 Share Posted September 28, 2022 9 minutes ago, Grumpy Git said: Any one who thinks the right-wing UK press (Express / Mail) isn't controlled by unseen backroom forces behind the Tories must be blind. That may be the case, but the online comments suggests Mail readers are not falling for this. I look at this website too often, but this article highlights some of the moronic thinking now cosplaying are a "conservative" party. The comments totally slate the article, likewise they've been slating the non-budget from last week. https://conservativehome.com/2022/09/28/daniel-hannan-no-the-pound-isnt-crashing-because-of-a-trifling-batch-of-tax-cuts/ sage 1 Link to comment Share on other sites More sharing options...
sage Posted September 28, 2022 Share Posted September 28, 2022 12 minutes ago, Grumpy Git said: Any one who thinks the right-wing UK press (Express / Mail) doesn't control the Tories must be blind. FTFY Link to comment Share on other sites More sharing options...
sage Posted September 28, 2022 Share Posted September 28, 2022 5 minutes ago, ariotofmyown said: That may be the case, but the online comments suggests Mail readers are not falling for this. I look at this website too often, but this article highlights some of the moronic thinking now cosplaying are a "conservative" party. The comments totally slate the article, likewise they've been slating the non-budget from last week. https://conservativehome.com/2022/09/28/daniel-hannan-no-the-pound-isnt-crashing-because-of-a-trifling-batch-of-tax-cuts/ Absolute loon Link to comment Share on other sites More sharing options...
Ram-Alf Posted September 28, 2022 Share Posted September 28, 2022 24 minutes ago, Grumpy Git said: Any one who thinks the right-wing UK press (Express / Mail) isn't controlled by unseen backroom forces behind the Tories must be blind. I get the Daily Brail, I feel left out ? Link to comment Share on other sites More sharing options...
Grumpy Git Posted September 28, 2022 Share Posted September 28, 2022 11 minutes ago, sage said: Absolute loon You know that, I know that, but the blue rinse brigade that gave us Maggie v1.0001 lap it up. Link to comment Share on other sites More sharing options...
Ramarena Posted September 28, 2022 Share Posted September 28, 2022 I don't know if it's a bit of an over exaggeration, but to even be talking about this.......Holy Moly! Link to comment Share on other sites More sharing options...
Stive Pesley Posted September 28, 2022 Share Posted September 28, 2022 18 minutes ago, Ramarena said: I don't know if it's a bit of an over exaggeration, but to even be talking about this.......Holy Moly! Wow - the worst thing about all of this, is the hedge fund managers who were tipped off in advance of the budget, knew this was coming and thus made a fortune by shorting the pound - also knew that the BoE would have to step in and salvage the mess. Zero guilt for them I guess this is a good example of people "working hard" and getting rich. And by "working hard", I mean "owning politicians" Bu that's just me whining and stamping my feet because I'm jealous ? RoyMac5, Ramarena, Reggie Greenwood and 1 other 2 1 1 Link to comment Share on other sites More sharing options...
Ram-Alf Posted September 28, 2022 Share Posted September 28, 2022 (edited) 1 hour ago, Ramarena said: I don't know if it's a bit of an over exaggeration, but to even be talking about this.......Holy Moly! There would be anarchy on the streets if that were to happen, There's the protection of the FSCS(financial service compensation scheme)unless that's going to go the same way ?, Too many scare stories coming out after Fridays cockup. I see Truss and Kwarteng are hiding in a bunker, I'd wager they've got a COBRA meeting and unable to talk to the media and the British public ? Story here Bank intervention prompted by potential pension chaos Faisal Islam BBC Economics Editor Today’s Bank of England intervention was driven by the potential for chaos in a corner of the financial services industry that underpins pensions funds. This was the specific threat to financial stability that prompted the Bank to act. It was a decision of an emergency special meeting of its Financial Policy Committee. The speed and the scale of the collapse in the value of government bonds, known as gilts, which are required to be held because they are ordinarily so stable, put pressure on liability-driven investment funds. They support defined benefit pension schemes, and would today have faced having to be revalued or marked at low prices. In turn, that could have forced the pensions schemes to liquidate other assets, for example stock market holdings in a forced sale. The move was to stop these “spillovers”. This explains why the Monetary Policy Committee, which normally authorises bond-buying, did not make this decision. Insiders are adamant that this decision does not signal anything about where interest rates might go, and is not a form of loosening monetary policy or “printing money”, creating it out of thin air to help a troubled government with its funding. But all of this is only required because of the violent turn against British government debts since the mini-budget. It is a dramatic emergency medicine. The risk still lingers. It does not solve the underlying problem Edited September 28, 2022 by Unlucky Alf Ramarena 1 Link to comment Share on other sites More sharing options...
Ramarena Posted September 28, 2022 Share Posted September 28, 2022 2 hours ago, Unlucky Alf said: There would be anarchy on the streets if that were to happen, There's the protection of the FSCS(financial service compensation scheme)unless that's going to go the same way ?, Too many scare stories coming out after Fridays cockup. I see Truss and Kwarteng are hiding in a bunker, I'd wager they've got a COBRA meeting and unable to talk to the media and the British public ? Story here Bank intervention prompted by potential pension chaos Faisal Islam BBC Economics Editor Today’s Bank of England intervention was driven by the potential for chaos in a corner of the financial services industry that underpins pensions funds. This was the specific threat to financial stability that prompted the Bank to act. It was a decision of an emergency special meeting of its Financial Policy Committee. The speed and the scale of the collapse in the value of government bonds, known as gilts, which are required to be held because they are ordinarily so stable, put pressure on liability-driven investment funds. They support defined benefit pension schemes, and would today have faced having to be revalued or marked at low prices. In turn, that could have forced the pensions schemes to liquidate other assets, for example stock market holdings in a forced sale. The move was to stop these “spillovers”. This explains why the Monetary Policy Committee, which normally authorises bond-buying, did not make this decision. Insiders are adamant that this decision does not signal anything about where interest rates might go, and is not a form of loosening monetary policy or “printing money”, creating it out of thin air to help a troubled government with its funding. But all of this is only required because of the violent turn against British government debts since the mini-budget. It is a dramatic emergency medicine. The risk still lingers. It does not solve the underlying problem Indeed and as I said in my comment it's probably an over exaggeration. However the fact that the BoE has to even intervene after a budget is unprecedented. Ram-Alf 1 Link to comment Share on other sites More sharing options...
Tyler Durden Posted September 28, 2022 Share Posted September 28, 2022 2 hours ago, Unlucky Alf said: There would be anarchy on the streets if that were to happen, There's the protection of the FSCS(financial service compensation scheme)unless that's going to go the same way ?, Too many scare stories coming out after Fridays cockup. I see Truss and Kwarteng are hiding in a bunker, I'd wager they've got a COBRA meeting and unable to talk to the media and the British public ? Story here Bank intervention prompted by potential pension chaos Faisal Islam BBC Economics Editor Today’s Bank of England intervention was driven by the potential for chaos in a corner of the financial services industry that underpins pensions funds. This was the specific threat to financial stability that prompted the Bank to act. It was a decision of an emergency special meeting of its Financial Policy Committee. The speed and the scale of the collapse in the value of government bonds, known as gilts, which are required to be held because they are ordinarily so stable, put pressure on liability-driven investment funds. They support defined benefit pension schemes, and would today have faced having to be revalued or marked at low prices. In turn, that could have forced the pensions schemes to liquidate other assets, for example stock market holdings in a forced sale. The move was to stop these “spillovers”. This explains why the Monetary Policy Committee, which normally authorises bond-buying, did not make this decision. Insiders are adamant that this decision does not signal anything about where interest rates might go, and is not a form of loosening monetary policy or “printing money”, creating it out of thin air to help a troubled government with its funding. But all of this is only required because of the violent turn against British government debts since the mini-budget. It is a dramatic emergency medicine. The risk still lingers. It does not solve the underlying problem You're only covered for up to 85k in any one bank under the FSCS. Which is why even though the probability of a financial institution goes bust again is very low I never exceed this amount. Rev 1 Link to comment Share on other sites More sharing options...
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