[Politics] Liz Truss **RESIGNS 20/10/2022**

[Sid and the Sharknados]

Is the CoE deliberately crashing the economy?

They do say that money's the root of all evil.

 

[beorhthelm]

GBP has crashed again now that market has digested what this morning's BoE intervention means, and news is out about why they acted (Pension funds getting hammered). GBP now worth less than US$1.06.

i'd have thought pensions would be neutral, interesting if they've been overextended or the market has moved that much to put them in trouble.

 

[A mex eyecan]

Just checked my Pension Pot.

Yep, hammered.


Truss owes me.

You’re brave, too bloody scared to look at mine ….

 

[Springal]

https://news.sky.com/story/bank-of-...licy-is-almost-unthinkable-ed-conway-12706877 Bank of England's extraordinary response to government policy is almost unthinkable | Ed Conway


How anyone can even defend this mob is beggars belief

 

[Mackenzie]

church of england?

Sorry, the Chancellor of the Exchequer

 

[PILTDOWN MAN]

Just checked my Pension Pot.

Yep, hammered.


Truss owes me.

I moved my pension investments last week. The pot is down £7000 this year but I've protected the majority of it from this government. I'm taking some of it out next year so though I've lost loads I'm content I've stemmed the flow outwards! I certainly will not be making much from now to April certainly nothing like the loss.

 

[PILTDOWN MAN]

i'd have thought pensions would be neutral, interesting if they've been overextended or the market has moved that much to put them in trouble.

As most are invested in shares and bonds (oh dear) all are down.

 

[West Hoathly Seagull]

GBP has crashed again now that market has digested what this morning's BoE intervention means, and news is out about why they acted (Pension funds getting hammered). GBP now worth less than US$1.06.

Crispin Odey (in the Daily Telegraph, so behind a paywall) is blaming Remainers for this slump. I'm glad to know that I have such influence over the currency markets. I might as well go and carry out my own shorting operation on the Pound, buying up Dollars and then selling them once the Pound goes below parity against the Dollar.

Seriously, we've got a thread on here entitled "Is Keir credible?" I know that thread was started before all this shower, but come on people. This is like 1992 all over again, only then Norman Lamont was able to take us out of the ERM and our economy did recover under Kenneth Clarke's careful stewardship.

 

[Jim in the West]

i'd have thought pensions would be neutral, interesting if they've been overextended or the market has moved that much to put them in trouble.

I don't profess to understand the detail, but pension funds will generally invest in low risk assets such as UK government bonds. These have been hammered over the past few days. In addition, the value of hedging instruments has moved dramatically, meaning that the counter-party is asking for more collateral....which in turn means pension funds are having to liquidate assets at astonishing speed. If the Bank of England hadn't stepped in it would have been absolute carnage. It could still be carnage.

The crazy thing is, a few ageing right-wing nutters (Tory Party Members) were allowed to vote for this, and the system allows the likes of Truss and Kwarteng (who are both completely out of their depth) to make thse huge decisions which negatively impact tens of millions of people.

Incidentally, where is Liz Truss? Why isn't she addressing the nation right now?! She needs to front up, or pi$$ off very quickly and let someone competent take over.

 

[deletebeepbeepbeep]

Why hasn't parliament been recalled? Why hasn't Truss made a statement? We're on the brink of a catastrophe for millions in this country and there has been no intervention from her at all. It is astonishing.

 

[Thunder Bolt]

Crispin Odey (in the Daily Telegraph, so behind a paywall) is blaming Remainers for this slump. I'm glad to know that I have such influence over the currency markets. I might as well go and carry out my own shorting operation on the Pound, buying up Dollars and then selling them once the Pound goes below parity against the Dollar.

Seriously, we've got a thread on here entitled "Is Keir credible?" I know that thread was started before all this shower, but come on people. This is like 1992 all over again, only then Norman Lamont was able to take us out of the ERM and our economy did recover under Kenneth Clarke's careful stewardship.

I've even seen one Tory saying we should leave the IMF. The government don't like any sort of accountability, do they?

Check out Feargal Sharkey's speech at the Labour Party conference.

 

[Audax]

Just checked my Pension Pot.

Yep, hammered.


Truss owes me.

Likewise. I have two at the moment - one from a previous job that was performing ok and costing me less in fees and thus I left alone, and one from my current job. The old one has lost 3% in value this month alone, and I would hazard vast majority of that in the last week. The other doesn't make it as easy to do the same calculation, but it's been absolutely hammered and as it stands at the moment, it's worth less than what I've put into it over the last 10 years.

Edit: ignore the bit in italic above. I forgot that my work pension was moved to a new provider a couple years back, so the "what I've put in" value quoted actually includes all of the growth from the previous plan. So rather than it being less than what went in over the last 10 years, I should have said worth less than what was transferred in and has been added since Jan 2021.

 

[Westdene Seagull]

a radical economic policy, devine intervention!

I think a few well aimed lightenging strikes should surfice.

 

[WATFORD zero]

Why hasn't parliament been recalled? Why hasn't Truss made a statement? We're on the brink of a catastrophe for millions in this country and there has been no intervention from her at all. It is astonishing.

Because, although I would normally be in complete agreement with you, Truss and Kwarteng are quite unlike any previous PM and Chancellor, exactly as predicted by so many. Millions are already suffering and I'm really not certain that any intervention they would make wouldn't make it worse

Still, only another 2 years to go

 

[nicko31]

I've even seen one Tory saying we should leave the IMF. The government don't like any sort of accountability, do they?

Check out Feargal Sharkey's speech at the Labour Party conference.

Tories want us to leave the universe, embarassing parade of the usual "its never our fault" parade, Redwood, Hannan, some "smug" hedge fund manager etc

Truss has a choice..

a) U-turn and look a t**t

or

b) Impose further austerity on the country and be unelectable for a generation

I see Sunak isn't bothering to attend the conference next week, wise move

 

[beorhthelm]

As most are invested in shares and bonds (oh dear) all are down.

the story is their hedged positions are under threat. they hedge to offset short term movements, they arent supposed to be taking large margined positions that can get blown up on a few % shift of bond price.

 

[WATFORD zero]

the story is their hedged positions are under threat. they hedge to offset short term movements, they arent supposed to be taking large margined positions that can get blown up on a few % shift of bond price.

They probably thought quite reasonably that the Chancellor 'isn't supposed' too crash the economy and hope the BOE comes to the rescue

 

[RandyWanger]

Apparently, it's Starmer's fault. According to Hannan.

 

[Audax]

the story is their hedged positions are under threat. they hedge to offset short term movements, they arent supposed to be taking large margined positions that can get blown up on a few % shift of bond price.

We're not talking "a few percent shift" in relative terms, though. It was a massive shift. 10yr Gilt was 3.5% prior to Friday's "fiscal event" (which was already a long way up compared to the start of this year, but the growth had been gradual). Prior to the announcement today, it was over 4.5% and showing signs of wanting to go even higher. That's a 30% increase within just a few days. That's highly abnormal and you cannot expect pension fund managers to be managing their funds with so much security built in that they can just ride out the shit storm KamiKwasi caused.

Edit to add: GBP value has returned to US$1.066-ish after the crash earlier. Looking very much like that $1.065 to $1.07 area is where the market feels it should be at the moment.

 

[pb21]

Apparently, it's Starmer's fault. According to Hannan.

I have also heard its due to currency traders scared of Labour and remoaners.