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Her government proposed an unfunded budget that caused a gilt market panic. Part of the mortgage market dried up. Variable mortgage rates exploded. Pension fund
by markvdb 4y ago
Her government proposed an unfunded budget that caused a gilt market panic. Part of the mortgage market dried up. Variable mortgage rates exploded. Pension funds had to resort to emergency measures. The Bank of England had to intervene.
- jeffbee 4y agoI'd love to know why proposing borrowing to cover top-bracket tax rate cuts sends Britain spiraling into crisis but in America that is just how we do.
- wbl 4y agoBecause the UK in 2022 is not the US in 2017. One had high growths and low rate expectations. The other had high inflation raising rate expectations, so the borrowing cost more.
- Apocryphon 4y agoReserve currency of the world, baby!
- MichaelZuo 4y agoDon't the groups in the gilt market, mortgage market, pension funds, etc., have lobbyists that would be able to communicate their concerns and fears ahead of time? For that matter aren't there Whitehall staff that could easily have said something? It all seems bizarre from the outside.
- pjc50 4y agoThere are all sorts of processes to say to her that this was a bad idea. She ignored them. It's a very Chernobyl kind of process: in order to run your experiment, first ignore all the safety alarms. And, of course, very Brexit.
- MichaelZuo 4y agoWhy did the relevant Ministers, such as the lord Chancellor, Chancellor of the Exchequer, etc., sign off on it too?