[Politics] Liz Truss **RESIGNS 20/10/2022**

[Springal]

Can we send Truss & Kwarteng to the tower yet ?

 

[usernamed]

yes, if its potentially sensitive and not qualified with additional information. "if" something hadnt happend, something else might have happend is not facts. at least wait some time to verify and see what the real situation and outcomes are.

Yes, let’s ignore this constant erosion of our living standards, our international reputation and our economy. After all, in another five years this might all turn out to have been brilliant.

I confess that if the Kwarteng/Truss double act are still in power in 5 years time, we probably will look back on this as a sort of golden age.

Anyway, this road won’t lick itself clean…

 

[deletebeepbeepbeep]

[tweet]1575135370181754881[/tweet]

Buckle up...

 

[KZNSeagull]

The gilts effect on everyone is getting exaggerated by all and sundry.

I did some online research earlier, it was hard to pinpoint exact numbers in 2022. But I established that c. 30% of public sector pensions were invested in all types of gilt, corporate bond and cash equivalents. Probably even lower in DB and private pensions. Public sector pensions are safe from all this anyway.

Some lay folk and stirrers are talking as if pension pots are being partially wiped out.

The rubbish non-real return on all gilts for a number of years has actually been a good thing, by accident. The old splits of e.g. 60% equities/40% bonds were long since abandoned. My friend with 7 figures managed by Cazenove's is 64, his pot before Kwarteng had 0% invested in gilts. The excellent manager had sold them all.

Mass insolvencies of pension funds? Surely that could only happen if a fund held all it's assets in gilts and it had to sell them to pay out the pensions but they now weren't worth enough to cover them all. That cannot possibly be right. What am I missing?

 

[beorhthelm]

Yes, let’s ignore this constant erosion of our living standards, our international reputation and our economy. After all, in another five years this might all turn out to have been brilliant.

I confess that if the Kwarteng/Truss double act are still in power in 5 years time, we probably will look back on this as a sort of golden age.

Anyway, this road won’t lick itself clean…

who said ignore? realtime feed of sensitive data can cause damage. nothing in the tweets about the issues you mention. maybe im just triggered because i remember Peston near causing a bank run because he wanted a scoop on BoE intervention before they were ready.

 

[CHAPPERS]

Truss and Kwarteng seem to have been quite idle in the last few days don’t they, which is ironic.

 

[rogersix]

does anyone know what the real bunglefunk is actually doing?

 

[Thunder Bolt]

Can we send Truss & Kwarteng to the tower yet ?

We've got to find them first.

 

[Nobby Cybergoat]

Mass insolvencies of pension funds? Surely that could only happen if a fund held all it's assets in gilts and it had to sell them to pay out the pensions but they now weren't worth enough to cover them all. That cannot possibly be right. What am I missing?

The issues i'm sure are to do with liquidity rather than whether there's enough in the fund

 

[mikeyjh]

The gilts effect on everyone is getting exaggerated by all and sundry.

I did some online research earlier, it was hard to pinpoint exact numbers in 2022. But I established that c. 30% of public sector pensions were invested in all types of gilt, corporate bond and cash equivalents. Probably even lower in DB and private pensions. Public sector pensions are safe from all this anyway.

Some lay folk and stirrers are talking as if pension pots are being partially wiped out.

The rubbish non-real return on all gilts for a number of years has actually been a good thing, by accident. The old splits of e.g. 60% equities/40% bonds were long since abandoned. My friend with 7 figures managed by Cazenove's is 64, his pot before Kwarteng had 0% invested in gilts. The excellent manager had sold them all.

Yet, my (2) advisors both have us in exactly that 60/40 split (I'm 50 rather than 64 so probably looking at a slightly different time scale), bonds have suffered a little but we're still up over a tincey bitthe last 12 months, bonds obv having an impact.... Opinions, opinions and all that. Now may be a good time to go in to bonds?!?

 

[Argartu]

[tweet]1575066878133010440[/tweet]

 

[Audax]

Mass insolvencies of pension funds? Surely that could only happen if a fund held all it's assets in gilts and it had to sell them to pay out the pensions but they now weren't worth enough to cover them all. That cannot possibly be right. What am I missing?

I'm just reading this: https://www.ft.com/content/038b30c3-f550-4cc0-93ed-9154021d6ee2

Think it explains the problem.

 

[Nobby Cybergoat]

who said ignore? realtime feed of sensitive data can cause damage. nothing in the tweets about the issues you mention. maybe im just triggered because i remember Peston near causing a bank run because he wanted a scoop on BoE intervention before they were ready.

That bloody Peston, he's got a lot to answer for causing that financial crisis. How dare a financial journalist print a scoop about an appallingly structured financial system.

A bit like that bloody labour party now, spooking international investors by leading the polls.

 

[stewart12]

my expectations of Truss at the beginning of her spell were rock bottom and I really didn't think she could possibly make me think of any less of her

but by christ she has succeeded in doing so. Incredible stuff

 

[KZNSeagull]

I'm just reading this: https://www.ft.com/content/038b30c3-f550-4cc0-93ed-9154021d6ee2

Think it explains the problem.

Thanks. Over my head. I'm out

 

[Audax]

Thanks. Over my head. I'm out

Ha ha. Think I understood. basically boils down to "pension funds were fine until the gilts moved so far and so fast that they could no longer keep up with correcting their liabilities". So BoE had to step in to put the brakes on and give them room to sort themselves out.

 

[KZNSeagull]

Ha ha. Think I understood. basically boils down to "pension funds were fine until the gilts moved so far and so fast that they could no longer keep up with correcting their liabilities". So BoE had to step in to put the brakes on and give them room to sort themselves out.

Yes, I think that's about right. Their liabilities in this case coming because they have hedged them somehow and are having to pay out higher premiums on the hedging instrument as the yields have gone up?

 

[Biscuit]

Just imagine if we'd voted for chaos with Ed Milliband.

It always ends this way for the Tories. Even with the economy on its knees, they still won't tax their mates.

Lib/Lab coalition at the next GE please, and then push PR through. Had enough of this mess.

 

[usernamed]

Just imagine if we'd voted for chaos with Ed Milliband.

He could run a Sunday morning politics show under that title.

 

[franks brother]

Liz Truss has spoken today to Ukraine's president about the ongoing crisis

Zelensky promised to provide all the assistance he could