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



Springal

Well-known member
Feb 12, 2005
24,222
GOSBTS
Can we send Truss & Kwarteng to the tower yet ?
 




usernamed

New member
Aug 31, 2017
763
yes, if its potentially sensitive and not qualified with additional information. "if" something hadnt happend, something else might have happend is not facts. at least wait some time to verify and see what the real situation and outcomes are.

Yes, let’s ignore this constant erosion of our living standards, our international reputation and our economy. After all, in another five years this might all turn out to have been brilliant.

I confess that if the Kwarteng/Truss double act are still in power in 5 years time, we probably will look back on this as a sort of golden age.

Anyway, this road won’t lick itself clean…
 




KZNSeagull

Well-known member
Nov 26, 2007
20,389
Wolsingham, County Durham
The gilts effect on everyone is getting exaggerated by all and sundry.

I did some online research earlier, it was hard to pinpoint exact numbers in 2022. But I established that c. 30% of public sector pensions were invested in all types of gilt, corporate bond and cash equivalents. Probably even lower in DB and private pensions. Public sector pensions are safe from all this anyway.

Some lay folk and stirrers are talking as if pension pots are being partially wiped out.

The rubbish non-real return on all gilts for a number of years has actually been a good thing, by accident. The old splits of e.g. 60% equities/40% bonds were long since abandoned. My friend with 7 figures managed by Cazenove's is 64, his pot before Kwarteng had 0% invested in gilts. The excellent manager had sold them all.

Mass insolvencies of pension funds? Surely that could only happen if a fund held all it's assets in gilts and it had to sell them to pay out the pensions but they now weren't worth enough to cover them all. That cannot possibly be right. What am I missing?
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,597
Yes, let’s ignore this constant erosion of our living standards, our international reputation and our economy. After all, in another five years this might all turn out to have been brilliant.

I confess that if the Kwarteng/Truss double act are still in power in 5 years time, we probably will look back on this as a sort of golden age.

Anyway, this road won’t lick itself clean…

who said ignore? realtime feed of sensitive data can cause damage. nothing in the tweets about the issues you mention. maybe im just triggered because i remember Peston near causing a bank run because he wanted a scoop on BoE intervention before they were ready.
 












Nobby Cybergoat

Well-known member
Jul 19, 2021
7,565
Mass insolvencies of pension funds? Surely that could only happen if a fund held all it's assets in gilts and it had to sell them to pay out the pensions but they now weren't worth enough to cover them all. That cannot possibly be right. What am I missing?

The issues i'm sure are to do with liquidity rather than whether there's enough in the fund
 


mikeyjh

Well-known member
Dec 17, 2008
4,575
Llanymawddwy
The gilts effect on everyone is getting exaggerated by all and sundry.

I did some online research earlier, it was hard to pinpoint exact numbers in 2022. But I established that c. 30% of public sector pensions were invested in all types of gilt, corporate bond and cash equivalents. Probably even lower in DB and private pensions. Public sector pensions are safe from all this anyway.

Some lay folk and stirrers are talking as if pension pots are being partially wiped out.

The rubbish non-real return on all gilts for a number of years has actually been a good thing, by accident. The old splits of e.g. 60% equities/40% bonds were long since abandoned. My friend with 7 figures managed by Cazenove's is 64, his pot before Kwarteng had 0% invested in gilts. The excellent manager had sold them all.

Yet, my (2) advisors both have us in exactly that 60/40 split (I'm 50 rather than 64 so probably looking at a slightly different time scale), bonds have suffered a little but we're still up over a tincey bitthe last 12 months, bonds obv having an impact.... Opinions, opinions and all that. Now may be a good time to go in to bonds?!?
 






Audax

Boing boing boing...
Aug 3, 2015
3,106
Uckfield


Nobby Cybergoat

Well-known member
Jul 19, 2021
7,565
who said ignore? realtime feed of sensitive data can cause damage. nothing in the tweets about the issues you mention. maybe im just triggered because i remember Peston near causing a bank run because he wanted a scoop on BoE intervention before they were ready.

That bloody Peston, he's got a lot to answer for causing that financial crisis. How dare a financial journalist print a scoop about an appallingly structured financial system.

A bit like that bloody labour party now, spooking international investors by leading the polls.
 


stewart12

Well-known member
Jan 16, 2019
1,684
my expectations of Truss at the beginning of her spell were rock bottom and I really didn't think she could possibly make me think of any less of her

but by christ she has succeeded in doing so. Incredible stuff
 






Audax

Boing boing boing...
Aug 3, 2015
3,106
Uckfield
Thanks. Over my head. I'm out :lolol:

Ha ha. Think I understood. basically boils down to "pension funds were fine until the gilts moved so far and so fast that they could no longer keep up with correcting their liabilities". So BoE had to step in to put the brakes on and give them room to sort themselves out.
 


KZNSeagull

Well-known member
Nov 26, 2007
20,389
Wolsingham, County Durham
Ha ha. Think I understood. basically boils down to "pension funds were fine until the gilts moved so far and so fast that they could no longer keep up with correcting their liabilities". So BoE had to step in to put the brakes on and give them room to sort themselves out.

Yes, I think that's about right. Their liabilities in this case coming because they have hedged them somehow and are having to pay out higher premiums on the hedging instrument as the yields have gone up?
 
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Biscuit

Native Creative
Jul 8, 2003
22,252
Brighton
Just imagine if we'd voted for chaos with Ed Milliband.

It always ends this way for the Tories. Even with the economy on its knees, they still won't tax their mates.

Lib/Lab coalition at the next GE please, and then push PR through. Had enough of this mess.
 
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