4 ms·
I think it's arguable that the minibudget overreaction wasn't remotely rational reporting or accurate as the cause of the gilt coupon drop. Certainly that day a
by easytiger 4y ago
I think it's arguable that the minibudget overreaction wasn't remotely rational reporting or accurate as the cause of the gilt coupon drop. Certainly that day a load of people made money on them as it was very obvious they'd be fine. But in the cloud of noise that followed, with even the nations top economic journalists regurgitating nonsense... i doubt 0.5% of the adult population could even tell you what happened to any degree of accuracy.
I'd argue she shouldn't have been choosen as she is weak in media terms, always has been, and was always going to be an easy target for the screaming minority of people.
And yes, timing was unlucky, but a prudent leader would have seen that
- raesene9 4y agoI'd say that all economics at a national level is about confidence. If the markets have confidence in what you're doing they don't react badly, if they don't have confidence in what you're doing, they react badly. By not laying the ground properly for their "mini-budget" they (Truss and Kwarteng) caused the markets to lose confidence in them, causing the problems that occurred. It doesn't really matter what most people thought of it, as they don't run the financial markets :)
- easytiger 4y agoI think you are quite accurate in everything you say. I worked on an FX LP desk for nearly a decade. A happy place to be in times of turmoil. The more turmoil, the wider the spread, the more money we made. The mini gilt crisis made millions for my mates in fixed income. Confidence collapse is brilliant when you know others don't understand the markets. You sense the fantasy