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  • Better late than never, the Bank of England rides to the gilt market’s rescue

    From think.ing.com

    In a dramatic policy U-turn, the Bank of England is resuming gilt purchases. This provides a potential exit door to the nascent UK financial crisis, though this may require the Bank to go even further. Nevertheless, an inter-meeting rate hike remains unlikely despite ongoing concerns about sterling weakness. Much needed relief for the gilt market: Better late than never. The Bank of England (BoE) has acknowledged the distressed trading conditions in the gilt market and announced it will carry out gilt purchases over the next two weeks, starting today. If this sounds like a U-turn, that's because it is. As we have ... (full story)

All these COULD have been avoided if mini-budget skipped:

a.) bankers cap
b.) 45% tax removal for those above £150K
c.) Reversal of NI
d.) Reduced tax from 20% to 19%

In all, nothing like what we saw in the past few days would have happened if trussonomics had not sold her fxcking unicorn idea, at the expense of us all!

I was previously predicting she may last till Dec 2022 or May 2023, it looks as though her mega mini-budget had expedited her political demise far earlier - time for a GE!
  •  Guest
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The contents of the budget didn't matter to the markets, it was the cost and who was going to pay.

Looks like the printers are paying and I'm starting to think that was the plan all along.

Whether this translates into higher inflation, we will have to wait and see. But Sterling is up strong today.
Quoting Guest
The contents of the budget didn't matter to the markets, it was the cost and who was going to pay. Looks like the printers are paying and I'm starting to think that was the plan all along. Whether this translates into higher inflation, we will have to wait and see. But Sterling is up strong today.
Contents do matter because that equates the cost you referred to.

Obviously trussnomics's chancellor would not have the balls to announced in the ill-fated unicorn budget - All peasants great and small in whole of UK will be paying MY multiple billion pounds dividend. Will he? Well although his boss C Odey nailed it - by shorting GBP.

Sterling looked "strong" but ain't at all strong today, it only recovered 50% of what it lost from 1.18xx before the budget. Good start though but doomed trussonomics.

Just reiterating again - am hoping we do not see a boom and bust cycle like Soros scenario.

The only time I saw trickle down theory works is when politicians learnt from the top, ie pm - never answer a queestion with a straight answer

Happy trading. Am off to bed......
  •  Guest
  • | IP XX.XXX.252.24
Quoting NotBoris
{quote} Contents do matter because that equates the cost you referred to. Obviously trussnomics's chancellor would not have the balls to announced in the ill-fated unicorn budget - All peasants great and small in whole of UK will be paying MY multiple billion pounds dividend. Will he? Well although his boss C Odey nailed it - by shorting GBP. Sterling looked "strong" but ain't at all strong today, it only recovered 50% of what it lost from 1.18xx before the budget. Good start though but doomed trussonomics. Just reiterating again - am...
There is no cost, it's 'directly' free, the printers pay. The £900 billions of Gilts, soon to more will never be repaid. Maybe there will be indirect costs, have to wait and see.

Regarding Sterling being 'strong' I meant the generally held consensus, that if you print money, your currency falls. Well the UK are printing money and don't have the cover of all countries printing money. The currency did not fall, it went up and went up strong.

My other point, Truss knew the BoE would print and maybe the BoE agreed with Truss before. They needed the 'crisis' to give the BoE cover to actually print.
Quoting Guest
{quote} There is no cost, it's 'directly' free, the printers pay. The £900 billions of Gilts, soon to more will never be repaid. Maybe there will be indirect costs, have to wait and see. Regarding Sterling being 'strong' I meant the generally held consensus, that if you print money, your currency falls. Well the UK are printing money and don't have the cover of all countries printing money. The currency did not fall, it went up and went up strong. My other point, Truss knew the BoE would print and maybe the BoE agreed with Truss before. They needed...
You have a valid point there
Someone at BOE should stay awake during Asia time trading. Wake up.

There is a recent trend of chunky sell off during Asia time - to avoid scrutiny of some, is that your armlength Odey?

This cycle of buying bonds to prop up GBP to be met by sell-off during off-office time is not sustainable - it is us who will suffer not the bloody HF managers!
Quoting NotBoris
{quote} Contents do matter because that equates the cost you referred to. Obviously trussnomics's chancellor would not have the balls to announced in the ill-fated unicorn budget - All peasants great and small in whole of UK will be paying MY multiple billion pounds dividend. Will he? Well although his boss C Odey nailed it - by shorting GBP. Sterling looked "strong" but ain't at all strong today, it only recovered 50% of what it lost from 1.18xx before the budget. Good start though but doomed trussonomics. Just reiterating again - am...
We do live in curious times don't we.

We have a government trying to find 'alternatives' to classic economic theories in an effort to drive this country forwards. Plus we have a central bank who are simultaneously raising rates and printing money.

Is the cat alive or dead?
Quoting nbfx
{quote} We do live in curious times don't we. We have a government trying to find 'alternatives' to classic economic theories in an effort to drive this country forwards. Plus we have a central bank who are simultaneously raising rates and printing money. Is the cat alive or dead?
Was just listening to truss blabbering on Norfolk Radio this morning - all I can say is what a stubborn and ignorant cow she is, worst than May.

Precurious time indeed with this crazy woman.
Quoting NotBoris
{quote} Was just listening to truss blabbering on Norfolk Radio this morning - all I can say is what a stubborn and ignorant cow she is, worst than May. Precurious time indeed with this crazy woman.
And the sad thing is that I think Rishi Sunak wouldn't have been any better but for different reasons. And I really don't think the opposition parties have any more to offer either with their constant efforts to score cheap political points while offering nothing else.

Put simply and using that well loved technical term. - We're all fu{ked!
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  • Story Stats
  • Posted: Sep 28, 2022 3:32pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 9  /  Views: 2,063

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