| The Pound 13:57 - Sep 24 with 99826 views | Stanmiguel |
Well, the money markets didn't like the mini budget.
I met Liz Truss in a hotel in Monmouth a few years ago.
She said her solution to pensioner poverty would be to feed them on Pedigree Chum.
Not only would this save a lot of money, it would give them shiny coats and a nice cold nose. |  | | |  |
| The Pound on 19:59 - Sep 28 with 2886 views | Ranger_Things |
| The Pound on 19:52 - Sep 28 by Sonofpugwash |
I know,let's just print some more money.
Hey Presto!(or hey Peston)
That did the trick. |
Magic Tory money tree to the rescue. |  | | |
| The Pound on 00:48 - Sep 29 with 2609 views | plasmahoop |
| The Pound on 16:21 - Sep 28 by JimmyR |
Where are you getting these figures from?
https://en.wikipedia.org/wiki/United_Kingdom_national_debt
In 2007 national debt was 35% of GDP well under half of what it is now? I wouldn't usually go to wikipedia for data, but i don't have all day to trawl through through the OBR's/IFS's archives
Genuinely, i'm perplexed at where this this perception that ' Gordon brown played his part by borrowing unnecessarily in the good times.'
Please show me the evidence? I'd love you to change my mind.
Or just explain why it is you think that a chalenclor from 15 years ago when govt debt was less that half what it is now is in anyway responsible for the current government announcing they are going to borrow loads of money, and potentially causing an economic catastrophe is responsible for the current mini crisis
Really, genuinely - I'd love to understand why you think something which simply isn't supported by the data? Have you just been looking at the nominal amount in pounds as opposed to the real figures adjusted for inflation?
As £1 in 2007 is £1.54 today
https://www.officialdata.org/uk/inflation/2007?amount=1 |
It is a statistical minefield, but on Wikipedia if you look up the budget for each year in 2009 after the financial crisis the deficit for the year was 175 billion. In the years preceding, it was 34 and 43 billion. Which to be fair wasn't anywhere near as big as I thought it was. But I think it was still bad, given there was a surplus at the end of the 90s. If they genuinely believed in Keynesian economics, they would have continued down this path to save for the better times.
But ultimately its quite small compared to recent borrowings, so although it has contributed, I think I'm letting my hatred of Gordon brown cloud my judgement. | | | |
| The Pound on 06:42 - Sep 29 with 2482 views | Ranger_Things |
Liz Truss still in hiding and Kamikwazi refusing all interviews. Instead the Government are briefing against the Bank of England and blaming others. I’m not sure how long that strategy will work but Boris Johnson could recommend a big fridge or foreign donor’s holiday villa to hold up in for the long term. [Post edited 29 Sep 2022 7:30]
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| The Pound on 08:44 - Sep 29 with 2289 views | connell10 |
| The Pound on 06:42 - Sep 29 by Ranger_Things |
Liz Truss still in hiding and Kamikwazi refusing all interviews. Instead the Government are briefing against the Bank of England and blaming others. I’m not sure how long that strategy will work but Boris Johnson could recommend a big fridge or foreign donor’s holiday villa to hold up in for the long term. [Post edited 29 Sep 2022 7:30]
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Liz Truss , for the love of god woman stand down! The spine of a jellyfish and makes old Maybot look aggressive! ABSOULETLY USELESS! |  |
| AND WHEN I DREAM , I DREAM ABOUT YOU AND WHEN I SCREAM I SCREAM ABOUT YOU!!!!! | | Poll: | best number 10 ever? |
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| The Pound on 08:56 - Sep 29 with 2270 views | Northernr |
| The Pound on 06:42 - Sep 29 by Ranger_Things |
Liz Truss still in hiding and Kamikwazi refusing all interviews. Instead the Government are briefing against the Bank of England and blaming others. I’m not sure how long that strategy will work but Boris Johnson could recommend a big fridge or foreign donor’s holiday villa to hold up in for the long term. [Post edited 29 Sep 2022 7:30]
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They've put her up for a round of local radio interviews this morning. If they thought that would get her some underarm "who is the greatest monger?" style Partridge questions it has backfired badly. Don't underestimate proper local journos... |  | | |
| The Pound on 09:11 - Sep 29 with 2219 views | 222gers |
I remember some folk saying “you'll be wanting ol' Boris back one day”
I didn't think it would be so soon……. |  | | |
| The Pound on 09:12 - Sep 29 with 2217 views | ngbqpr |
If I may paraphrase the terrace chant that I believe was first popularised at Elland Road:
#AEAW - All Economists Aren't We |  |
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| The Pound on 09:21 - Sep 29 with 2185 views | traininvain |
| The Pound on 09:11 - Sep 29 by 222gers |
I remember some folk saying “you'll be wanting ol' Boris back one day”
I didn't think it would be so soon……. |
Truss’s interviews this morning won’t do anything to calm the markets. She’s clearly a complete liability.
Still, all worthwhile to get rid of Johnson for having a piece of cake and a beer after work during Covid lockdowns. The law of unintended consequences at play here. |  | | |
| The Pound on 09:28 - Sep 29 with 2167 views | BostonR |
| The Pound on 08:56 - Sep 29 by Northernr |
They've put her up for a round of local radio interviews this morning. If they thought that would get her some underarm "who is the greatest monger?" style Partridge questions it has backfired badly. Don't underestimate proper local journos... |
She is being dismantled by these brilliant local journalists who really know their brief. As she blunders through each interview the UK bond markets are diving. This could all end very badly for us or her today.
The BoE must be close to raising interest rates again. |  | | |
| The Pound on 09:48 - Sep 29 with 2128 views | Maggsinho |
| The Pound on 08:56 - Sep 29 by Northernr |
They've put her up for a round of local radio interviews this morning. If they thought that would get her some underarm "who is the greatest monger?" style Partridge questions it has backfired badly. Don't underestimate proper local journos... |
Her performance has been astonishing, dead air, rejecting the 'premise of the question', little chuckles in her replies, they've eaten her alive. |  | | |
| The Pound on 09:59 - Sep 29 with 2089 views | stevec |
Getting back to Gordon Brown (and Blair) the biggest mistake ever made was their handing the keys of the economy to the BofE. Been a total disaster.
Inside 10 years of that the banking system crashed the economy, we’ve been paying the price ever since.
The net result of low interest rates has been stagnation, low pay for the masses whilst offering credit to consumers at unsustainable low rates resulting in ridiculous house prices and enormous personal mortgage debt.
What’s happening now I’ve been saying was inevitable for years and years, it was just a matter of when and how.
We now have to get back to the old normal of existing under interest rates of 4 to 5%. Any responsible government should make it clear to the banks they’ll be no repossessions, if house prices drop below their mortgage amount then the banks will be made to pick up that deficit.
There are investment banks with humongous reserves, they should also be told they’ll have to pick up the slack if the commercial banks struggle. That will focus all their minds.
If house prices fall, tell people they won’t lose their homes, but from now on the banks will be made to function around 4-5% rates, giving proper saving rates rather than the shameful offerings we’ve seen this century and they won’t be bailed out if they fail.
Governments need to return to governing. |  | | |
| The Pound on 10:17 - Sep 29 with 2011 views | BazzaInTheLoft |
| The Pound on 09:59 - Sep 29 by stevec |
Getting back to Gordon Brown (and Blair) the biggest mistake ever made was their handing the keys of the economy to the BofE. Been a total disaster.
Inside 10 years of that the banking system crashed the economy, we’ve been paying the price ever since.
The net result of low interest rates has been stagnation, low pay for the masses whilst offering credit to consumers at unsustainable low rates resulting in ridiculous house prices and enormous personal mortgage debt.
What’s happening now I’ve been saying was inevitable for years and years, it was just a matter of when and how.
We now have to get back to the old normal of existing under interest rates of 4 to 5%. Any responsible government should make it clear to the banks they’ll be no repossessions, if house prices drop below their mortgage amount then the banks will be made to pick up that deficit.
There are investment banks with humongous reserves, they should also be told they’ll have to pick up the slack if the commercial banks struggle. That will focus all their minds.
If house prices fall, tell people they won’t lose their homes, but from now on the banks will be made to function around 4-5% rates, giving proper saving rates rather than the shameful offerings we’ve seen this century and they won’t be bailed out if they fail.
Governments need to return to governing. |
No fan of Blair or Brown but this is revisionism at it's finest.
I know we are all tribal beings by nature, but is there absolutely no regard for the fact that Brown was prime minister over a decade ago and that the economy has been in the same hands since then?
It was so long ago Kevin Gallen was still a QPR player when he was in charge. [Post edited 29 Sep 2022 10:19]
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| The Pound on 10:22 - Sep 29 with 2012 views | traininvain |
| The Pound on 09:59 - Sep 29 by stevec |
Getting back to Gordon Brown (and Blair) the biggest mistake ever made was their handing the keys of the economy to the BofE. Been a total disaster.
Inside 10 years of that the banking system crashed the economy, we’ve been paying the price ever since.
The net result of low interest rates has been stagnation, low pay for the masses whilst offering credit to consumers at unsustainable low rates resulting in ridiculous house prices and enormous personal mortgage debt.
What’s happening now I’ve been saying was inevitable for years and years, it was just a matter of when and how.
We now have to get back to the old normal of existing under interest rates of 4 to 5%. Any responsible government should make it clear to the banks they’ll be no repossessions, if house prices drop below their mortgage amount then the banks will be made to pick up that deficit.
There are investment banks with humongous reserves, they should also be told they’ll have to pick up the slack if the commercial banks struggle. That will focus all their minds.
If house prices fall, tell people they won’t lose their homes, but from now on the banks will be made to function around 4-5% rates, giving proper saving rates rather than the shameful offerings we’ve seen this century and they won’t be bailed out if they fail.
Governments need to return to governing. |
Surely people would stop paying their mortgages if the government told banks that no repossessions were allowed. Don’t get me wrong, I like the idea as it’d save me a small fortune but in practice it would result in the banks collapsing.
Agree that we’re heading back to interest rates of 4%/5% and I suspect the government will need to intervene at some point next year (assuming interest rates reach 7%/8%) with some kind of mortgage interest rate relief fund to avoid thousands of people becoming homeless almost overnight. But who knows how that will be funded. | | | |
| The Pound on 10:24 - Sep 29 with 2002 views | BuckR |
| The Pound on 10:22 - Sep 29 by traininvain |
Surely people would stop paying their mortgages if the government told banks that no repossessions were allowed. Don’t get me wrong, I like the idea as it’d save me a small fortune but in practice it would result in the banks collapsing.
Agree that we’re heading back to interest rates of 4%/5% and I suspect the government will need to intervene at some point next year (assuming interest rates reach 7%/8%) with some kind of mortgage interest rate relief fund to avoid thousands of people becoming homeless almost overnight. But who knows how that will be funded. |
4-5%??
Lenders coming out today with lowest rates of 5.85% and thats below 60%LTV so they are already on average 6% and above [Post edited 29 Sep 2022 10:25]
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| The Pound on 10:25 - Sep 29 with 2001 views | BklynRanger |
| The Pound on 06:42 - Sep 29 by Ranger_Things |
Liz Truss still in hiding and Kamikwazi refusing all interviews. Instead the Government are briefing against the Bank of England and blaming others. I’m not sure how long that strategy will work but Boris Johnson could recommend a big fridge or foreign donor’s holiday villa to hold up in for the long term. [Post edited 29 Sep 2022 7:30]
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'Kamikwazi' - that did make me laugh. And cry a bit, but mostly laugh. |  | | |
| The Pound on 10:29 - Sep 29 with 1979 views | traininvain |
| The Pound on 10:24 - Sep 29 by BuckR |
4-5%??
Lenders coming out today with lowest rates of 5.85% and thats below 60%LTV so they are already on average 6% and above [Post edited 29 Sep 2022 10:25]
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I did say 7%/8% next year. I’m assuming they’ll settle down to 4%/5% at some point in the next couple of years but I’m no expert and I’ll probably be wrong! | | | |
| The Pound on 10:31 - Sep 29 with 1971 views | Rs_Holy |
| The Pound on 09:28 - Sep 29 by BostonR |
She is being dismantled by these brilliant local journalists who really know their brief. As she blunders through each interview the UK bond markets are diving. This could all end very badly for us or her today.
The BoE must be close to raising interest rates again. |
I'm am genuinely scared (for the first time in my life) about a UK Prime Minister... I am no financial expert (by any stretch of the imagination) but some of the things the current Government are doing are crazy... tax cuts which become totally negated by rising interest rates... Inflation rising because the Pound has bombed, which pushes up prices in the shops... Ignoring taxing energy companies which are making record profits... I mean a junior school child could grasp these things!
I've heard her interviewed a few times in the last few days... SHE HAS NOT GOT A FUNKING CLUE!!! [Post edited 29 Sep 2022 10:32]
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| The Pound on 10:41 - Sep 29 with 1921 views | Phildo |
| The Pound on 10:31 - Sep 29 by Rs_Holy |
I'm am genuinely scared (for the first time in my life) about a UK Prime Minister... I am no financial expert (by any stretch of the imagination) but some of the things the current Government are doing are crazy... tax cuts which become totally negated by rising interest rates... Inflation rising because the Pound has bombed, which pushes up prices in the shops... Ignoring taxing energy companies which are making record profits... I mean a junior school child could grasp these things!
I've heard her interviewed a few times in the last few days... SHE HAS NOT GOT A FUNKING CLUE!!! [Post edited 29 Sep 2022 10:32]
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this - genuinely alarming. |  | | |
| The Pound on 10:47 - Sep 29 with 1895 views | Sonofpugwash |
I can remember a time (late seventies) when the mortgage rate hit 17%
Long way to go yet. |  |
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| The Pound on 11:07 - Sep 29 with 1858 views | stevec |
| The Pound on 10:17 - Sep 29 by BazzaInTheLoft |
No fan of Blair or Brown but this is revisionism at it's finest.
I know we are all tribal beings by nature, but is there absolutely no regard for the fact that Brown was prime minister over a decade ago and that the economy has been in the same hands since then?
It was so long ago Kevin Gallen was still a QPR player when he was in charge. [Post edited 29 Sep 2022 10:19]
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Agree, they’ve all been complicit, Tories have been hopeless and should have been slowly increasing interest rates over the years when things were relatively calm, purely to control house prices from the obscene sums they’ve been reaching and also stimulate wage increases. They did none of that.
But ultimately and historically, it was Brown and Blair that made this catastrophic call. Given how much the left side of the argument generally thrives on the historical rather than the here and now, I’d thought you’d accept the significance. | | | |
| The Pound on 11:28 - Sep 29 with 1763 views | JimmyR |
| The Pound on 11:07 - Sep 29 by stevec |
Agree, they’ve all been complicit, Tories have been hopeless and should have been slowly increasing interest rates over the years when things were relatively calm, purely to control house prices from the obscene sums they’ve been reaching and also stimulate wage increases. They did none of that.
But ultimately and historically, it was Brown and Blair that made this catastrophic call. Given how much the left side of the argument generally thrives on the historical rather than the here and now, I’d thought you’d accept the significance. |
Please enlighten me, genuinely, i'd love you to change my mind...
Exactly, specifically what have blair and brown got to do directly with the current self inflicted 'crisis'? | | | |
| The Pound on 11:35 - Sep 29 with 1711 views | BazzaInTheLoft |
| The Pound on 11:07 - Sep 29 by stevec |
Agree, they’ve all been complicit, Tories have been hopeless and should have been slowly increasing interest rates over the years when things were relatively calm, purely to control house prices from the obscene sums they’ve been reaching and also stimulate wage increases. They did none of that.
But ultimately and historically, it was Brown and Blair that made this catastrophic call. Given how much the left side of the argument generally thrives on the historical rather than the here and now, I’d thought you’d accept the significance. |
Just not the case Steve.
The majority of the best performing economies have independent central banks. | | | |
| The Pound on 11:36 - Sep 29 with 1710 views | JimmyR |
| The Pound on 09:59 - Sep 29 by stevec |
Getting back to Gordon Brown (and Blair) the biggest mistake ever made was their handing the keys of the economy to the BofE. Been a total disaster.
Inside 10 years of that the banking system crashed the economy, we’ve been paying the price ever since.
The net result of low interest rates has been stagnation, low pay for the masses whilst offering credit to consumers at unsustainable low rates resulting in ridiculous house prices and enormous personal mortgage debt.
What’s happening now I’ve been saying was inevitable for years and years, it was just a matter of when and how.
We now have to get back to the old normal of existing under interest rates of 4 to 5%. Any responsible government should make it clear to the banks they’ll be no repossessions, if house prices drop below their mortgage amount then the banks will be made to pick up that deficit.
There are investment banks with humongous reserves, they should also be told they’ll have to pick up the slack if the commercial banks struggle. That will focus all their minds.
If house prices fall, tell people they won’t lose their homes, but from now on the banks will be made to function around 4-5% rates, giving proper saving rates rather than the shameful offerings we’ve seen this century and they won’t be bailed out if they fail.
Governments need to return to governing. |
BOE has been independent since 1998
So by your logic its borris/truss/kwertangs fault we had covid and gas prices are so high. Fair enough.
If house prices fall and interest rates go up people will lose their homes, for anyone who thinks this is the government's/chancellor from 12/15 years agos fault, good, you deserve it. Shouldn't have borrowed so much. You can look forward to being obsoleted by automation, should have paid more attention at school/in maths. | | | |
| The Pound on 11:41 - Sep 29 with 1687 views | Addinall |
| The Pound on 10:47 - Sep 29 by Sonofpugwash |
I can remember a time (late seventies) when the mortgage rate hit 17%
Long way to go yet. |
Me too. | | | |
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