Headlines from the week
Monday’s headline: The pound has collapsed to $1.03!
Tuesday’s headine: The pound has collapsed again to $1.06!
Thursday’s headline: The pound has collapsed again to $1.08!
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…and it’s only the pound, and it’s probably because of brexit. 
Nope, its because of the 45p rate - you know, the £2.5bn giveaway. Apparently capping energy prices at a cost of £160bn or the £400bn bill from covid have no impact
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You’re forgetting that the covid bill was unique to the UK, and directly caused by brexit.
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From FB
Great comment regarding the economy on BBC website
K
Comment posted by Kry Stonnerbyk,
today at 10:20 Kry Stonnerbyk
“Given the problems people are having buying houses at the moment could this be “The winter of discount tents”?
I’ll get me coat…”
Reply
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This is being caused by Brexit though
Pound has just collapsed to just under $1.11
The Krauts said we are being reckless whilst in the same breath committing £200bn to cap gas prices
Now I have no idea if our new govt have pulled a master stroke or have shit the bed, but one thing is clear the Davos brigade really don’t like it
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The Govt and Davos crowd are all cunts -imho - obviously
The BoE bail out was a reaction to the pension funds shitting themselves.
Look up LDIs - high risk investment strategies that are suppose to smooth pension fund income even when bonds fall in price
These have been created by, yep you guessed it, the investment banks, they are highly complex and no doubt the people buying them having got a scooby what they are actually buying
Anyway the bond market went the wrong way, the investment banks underwriting this stuff called in for more collateral which cause a liquidity issue with the pension funds and the Bank had to step in
Yet again we are having to bail out the market because of some dodgy fucking investment product that has been peddled by these sharks
And the worse bit - Lord Wolfson of Next fame wrote to the BOE in 2017 saying that these things look like a pile of shit and an accident waiting to happen m
I’ll send a link to a reality check around pension funds (esp DB schemes) when I log on to work tomorrow- Things are worrying but the media over-eggs everything and stokes the fires.
YoungAdult#2 shares house with person on Civil Service Fast Track Scheme. Currently in the Leveling Up Dept. Today they made 30%of all teams redundant with no notice. Not seen anything in the media.
Also there’s nothing in the media about the level of protesting against the government in Parliament Square - seems it’s more than the usual token protesting against niche causes and getting way way bigger.
Pound has collapsed to $1.12 - the level it was at before Kwasi opened his gob last week
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Would it be there without £65 billion worth of emergency action from the Bank of England, I wonder? And given that the Euro is also up against the dollar, maybe it’s as much a case of the dollar’s value falling as that of the pound rising.
I suspect there is a bit of end of week profit taking going on
I read an interesting factoid about interest rates and the housing market.
Most mortgages are many multiples of salary - fine when rates are low - not so much when they start going up. Apparently a 6% interest rate today would be similar in impact to the 20% rates of yesteryear when mortgages were restricted to multiples of 3 to 3.5 times salary.
I suppose the only saving grace is that back then most people were on variables so the pain was instant and brutal whereas most people are on fixed term so this will unwind over the next 5 years in a more controlled manner
Yes, I can easily believe that.
Truss will lose the next election
She will lose it regardless of what policies she puts forward. She cannot communicate, and therefore she cannot sell what she is peddling to the general public. Her political radar is also off line - the 45p band move was poorly timed. There is very little impact in real terms by that move, but politically its problematic.
If I were a red waller Tory MP, I would be out collecting consulting jobs and directorships like billy-ho in preparation for a very long political exile
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The supply of first time buyers needed to keep the housing market buoyant will all but dry up as the hurdles for them to get a mortgage will be too large. Cue sharp downturn in house building and a fair amount of unemployment to follow. Large house builders will be fine and smaller ones will be too extended to survive, just like 2008. Quite how this fits in with the growth mantra of this Government is beyond me, although i am sure they have a plan, maybe.
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You can tell the Tory donors are pissed by the tone of the fail past few days
She has pissed the donors off. Doesnt matter what electors think. She’s toast
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Quite something for someone who’s still in their probation period.
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