Ricofoley Posted October 2, 2022 Share Posted October 2, 2022 Let's see how the Scots are feeling about the situation 1 Quote Link to comment Share on other sites More sharing options...
Jason Posted October 2, 2022 Share Posted October 2, 2022 8 minutes ago, Ricofoley said: Let's see how the Scots are feeling about the situation lolol even the Welsh are unhappy Quote Link to comment Share on other sites More sharing options...
SuperSpreader Posted October 2, 2022 Share Posted October 2, 2022 When it rains it pours Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 2, 2022 Share Posted October 2, 2022 Jacob Rees-Mogg booed outside Tory conference in Birmingham | Jacob Rees-Mogg | The Guardian WWW.THEGUARDIAN.COM Business secretary given police escort as protests take place over rising cost of living and government policies Quote Link to comment Share on other sites More sharing options...
Anathema- Posted October 2, 2022 Share Posted October 2, 2022 18 hours ago, Jason said: lolol even the Welsh are unhappy would welch independence be bad Quote Link to comment Share on other sites More sharing options...
Jason Posted October 2, 2022 Share Posted October 2, 2022 1 hour ago, Anathema- said: would welch independence be bad Quote Link to comment Share on other sites More sharing options...
Anathema- Posted October 3, 2022 Share Posted October 3, 2022 would welsh independence be bad Quote Link to comment Share on other sites More sharing options...
chakoo Posted October 3, 2022 Share Posted October 3, 2022 Quote Link to comment Share on other sites More sharing options...
Jason Posted October 3, 2022 Share Posted October 3, 2022 Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 The BoE intervened in the bond market again: Bank of England intervenes in bond markets again, warns of 'material risk' to UK financial stability WWW.CNBC.COM "Dysfunction in this market, and the prospect of self-reinforcing 'fire sale' dynamics pose a material risk to UK financial stability," the bank warned. Quote The Bank of England on Tuesday announced an expansion of its emergency bond-buying operation as it looks to restore order to the country’s chaotic bond market. The central bank said it will widen its purchases of U.K. government bonds — known as gilts — to include index-linked gilts from Oct. 11 until Oct. 14. Index-linked gilts are bonds where payouts to bondholders are benchmarked in line with the U.K. retail price index. The move marks the second expansion of the Bank’s extraordinary rescue package in as many days, after it increased the limit for its daily gilt purchases on Monday ahead of the planned end of the purchase scheme on Friday. Needless to say, this is a bit of an understatement: Quote Moves of this magnitude are highly unusual in developed world sovereign bond markets. Quote Link to comment Share on other sites More sharing options...
Kal-El814 Posted October 11, 2022 Share Posted October 11, 2022 Modern finance is the world's least interesting fanfic. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 9 minutes ago, Kal-El814 said: Modern finance is the world's least interesting fanfic. This is an entirely self-inflicted wound courtesy of Truss and Kwarteng (the Chancellor of the Exchequer). Quote Link to comment Share on other sites More sharing options...
CayceG Posted October 11, 2022 Share Posted October 11, 2022 So I don't know how this came about. But if this continues, will the UK just go into default? Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 2 minutes ago, CayceG said: So I don't know how this came about. But if this continues, will the UK just go into default? There is a non-zero risk of default if the cost of borrowing for the UK government continues to increase. Quote Link to comment Share on other sites More sharing options...
b_m_b_m_b_m Posted October 11, 2022 Share Posted October 11, 2022 17 minutes ago, Commissar SFLUFAN said: U.K. government bonds — known as gilts This is not a real country Quote Link to comment Share on other sites More sharing options...
Jason Posted October 11, 2022 Share Posted October 11, 2022 5 minutes ago, b_m_b_m_b_m said: This is not a real country How many gilts to a gilf? Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 8 minutes ago, Commissar SFLUFAN said: There is a non-zero risk of default if the cost of borrowing for the UK government continues to increase. To further elaborate: UK borrowing costs hit highest levels since September market chaos | Government borrowing | The Guardian WWW.THEGUARDIAN.COM Yield on 10-year government bonds rises above 4.5% despite Bank of England trying to quell jitters Quote UK government borrowing costs have risen to the highest levels since the financial market chaos triggered by Kwasi Kwarteng’s mini-budget in September, despite renewed efforts by the Bank of England to smooth over the turmoil. The yield – or interest rate – on 10-year UK government bonds rose above 4.5% in afternoon trading on Monday, returning to the levels last seen two weeks ago, before the central bank intervened after the chancellor’s poorly received tax and spending statement. The fresh rise in borrowing costs came despite an attempt by the Bank earlier on Monday to quell market jitters before the expiry of its emergency bond market intervention at the end of this week. 1 Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 Also, the initial intervention from the Bank of England was driven entirely by a rapidly-spreading contagion in pension funds with several pushed to the brink of collapse: How meltdown in a $1 trillion market brought the UK to the brink of a financial crisis | CNN Business EDITION.CNN.COM Pension funds are designed to be dull. Their singular goal — earning enough money to make payouts to retirees — favors cool heads over brash risk takers. Quote Pension funds are designed to be dull. Their singular goal — earning enough money to make payouts to retirees — favors cool heads over brash risk takers. But as markets in the United Kingdom went haywire last week, hundreds of British pension fund managers found themselves at the center of a crisis that forced the Bank of England to step in to restore stability and avert a broader financial meltdown. All it took was one big shock. Following finance minister Kwasi Kwarteng’s announcement on Friday, Sept. 23 of plans to ramp up borrowing to pay for tax cuts, investors dumped the pound and UK government bonds, sending yields on some of that debt soaring at the fastest rate on record. The scale of the tumult put enormous pressure on many pension funds by upending an investing strategy that involves the use of derivatives to hedge their bets. As the price of government bonds crashed, the funds were asked to pony up billions of pounds in collateral. In a scramble for cash, investment managers were forced to sell whatever they could — including, in some cases, more government bonds. That sent yields even higher, sparking another wave of collateral calls. “It started to feed itself,” said Ben Gold, head of investment at XPS Pensions Group, a UK pensions consultancy. “Everyone was looking to sell and there was no buyer.” The Bank of England went into crisis mode. After working through the night of Tuesday, Sept. 27, it stepped into the market the next day with a pledge to buy up to £65 billion ($73 billion) in bonds if needed. That stopped the bleeding and averted what the central bank later told lawmakers was its worst fear: a “self-reinforcing spiral” and “widespread financial instability.” Quote Link to comment Share on other sites More sharing options...
CayceG Posted October 11, 2022 Share Posted October 11, 2022 So Kwasi Kwarteng is potentially on the hook for the insolvency of England's pension funds and possibly the financial collapse of the UK all because he wants to borrow to pay for tax cuts... Fucking Tories, man. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 4 minutes ago, CayceG said: So Kwasi Kwarteng is potentially on the hook for the insolvency of England's pension funds and possibly the financial collapse of the UK all because he wants to borrow to pay for tax cuts... Fucking Tories, man. That's more or less correct. Quote Link to comment Share on other sites More sharing options...
CitizenVectron Posted October 11, 2022 Author Share Posted October 11, 2022 Scotland can't leave quick enough, nor Ireland unifying. 1 Quote Link to comment Share on other sites More sharing options...
Jason Posted October 11, 2022 Share Posted October 11, 2022 1 3 Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 Things are going swimmingly. Quote Andrew Bailey, the governor of the Bank of England, says that the emergency intervention in the bond markets WILL come to an end on Friday He tells pension funds, which are heavily invested in UK debt: 'You've only got three days left now. You've got to get this done' He just essentially told the pension funds that they'd better have enough cash or other readily-liquidated assets on-hand for when the margin calls on their hedged positions come in. This is effectively the BoE playing the world's worst game of "chicken" with UK government. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 The pound/dollar exchange rate reacted accordingly: 1 Quote Link to comment Share on other sites More sharing options...
Brian Posted October 11, 2022 Share Posted October 11, 2022 Looks like a good time to see Manchester United lose in person 1 Quote Link to comment Share on other sites More sharing options...
marioandsonic Posted October 11, 2022 Share Posted October 11, 2022 So what affect is/would this have on the global and US economy? Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 11, 2022 Share Posted October 11, 2022 17 minutes ago, marioandsonic said: So what affect is/would this have on the global and US economy? In the interim, it would increase the "flight to safety" of funds seeking the haven of the US dollar and US government bonds. The overall impact to global financial markets would depend on their asset risk exposure to UK pension funds. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 12, 2022 Share Posted October 12, 2022 OH MY BLOODY GOD OLOLOLOLOLOLOLOLOLOLOLOLOLO Quote PM: Your majesty. Charles III: So you've come back again PM: It's a great pleasure. Charles III: Dear oh dear. Anyway... 1 Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 12, 2022 Share Posted October 12, 2022 The UK's 30 year bond now has a higher yield (indicating greater risk) than the equivalent Greek bond. Quote Link to comment Share on other sites More sharing options...
Chris- Posted October 12, 2022 Share Posted October 12, 2022 3 minutes ago, Commissar SFLUFAN said: The UK's 30 year bond now has a higher yield (indicating greater risk) than the equivalent Greek bond. Oh my god lmao Quote Link to comment Share on other sites More sharing options...
marioandsonic Posted October 12, 2022 Share Posted October 12, 2022 How fucked is the UK now? Quote Link to comment Share on other sites More sharing options...
Guest Posted October 12, 2022 Share Posted October 12, 2022 Just now, marioandsonic said: How fucked is the UK now? I think the actual situation isn’t entirely dire, just requires some sensible action by the government. Oh wait, that is rather dire Quote Link to comment Share on other sites More sharing options...
LazyPiranha Posted October 12, 2022 Share Posted October 12, 2022 51 minutes ago, sblfilms said: I think the actual situation isn’t entirely dire, just requires some sensible action by the government. Oh wait, that is rather dire Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 12, 2022 Share Posted October 12, 2022 This video does a superb job of explaining the situation: 1 Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted October 13, 2022 Share Posted October 13, 2022 And the band marches on: Quote A member of Truss's own cabinet tells me Truss's and Kwarteng's governance is so dire that some Tory MPs would vote against her in a confidence vote, preferring even a general election that cost them their seats to the current economic chaos Quote “Something will need to happen as we can’t go on like this for over 2 years”, one level-headed Tory MP tells me. Little over a month since Liz Truss became PM and already Conservative MPs are seriously suggesting she may have to go. What a turn of events. “We’re either dead or a joke” says another Conservative MP, on the prospect of either keeping Liz Truss as PM or removing her just a month after the last leadership contest. “So bleak”. Quote Volcanic night in the Conservative party A senior Tory MP who attended 1922 said the PM "should never be trusted" with a financial statement again "It's a bit like asking the gas engineer who has just blown up your house to come back and have another go" Quote "If the 22 changed the rules, we'd hit the threshold for a confidence vote in a couple of hours", a Tory MP tells me. Safe to say the mood is sulphurous in parliament this morning Quote Link to comment Share on other sites More sharing options...
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