Who is to blame and why Blame Game Starts
From DT
As chaos grips the bond market and the authorities fight to prevent a wave of pension fund collapses, a secondary battle is taking shape: who gets the blame for the biggest bout of instability since the financial crisis.
The Government has suggested that the Bank of England is responsible for the fiasco; the Bank is criticising the City watchdog and pensions regulators; and some of their supporters are in turn highlighting mistakes by individual funds.
Jacob Rees-Mogg was quick to point a finger at the Bank on Wednesday morning*for the disruption, which began in late September and has forced Threadneedle Street to step in with an emergency £65bn rescue package to prevent a meltdown as pension funds were forced to sell a massive wave of bonds to raise cash.
In what would once have been considered a highly unusual criticism, the Business Secretary said that the market carnage might have been caused by a reluctance to increase interest rates rather than the Government's poorly-received mini-Budget
Re: Who is to blame and why Blame Game Starts
Quote:
Originally Posted by
life on mars
From DT
As chaos grips the bond market and the authorities fight to prevent a wave of pension fund collapses, a secondary battle is taking shape: who gets the blame for the biggest bout of instability since the financial crisis.
The Government has suggested that the Bank of England is responsible for the fiasco; the Bank is criticising the City watchdog and pensions regulators; and some of their supporters are in turn highlighting mistakes by individual funds.
Jacob Rees-Mogg was quick to point a finger at the Bank on Wednesday morning*for the disruption, which began in late September and has forced Threadneedle Street to step in with an emergency £65bn rescue package to prevent a meltdown as pension funds were forced to sell a massive wave of bonds to raise cash.
In what would once have been considered a highly unusual criticism, the Business Secretary said that the market carnage might have been caused by a reluctance to increase interest rates rather than the Government's poorly-received mini-Budget
Didn’t something else happen in late September to cause the markets to have a nervous breakdown? This must be a joke right? I see there’s no mention of one or all of the Queen, Keir Starmer and his party, the anti growth coalition (can’t remember Truss mentioning them at PMQs yesterday, has she realised how daft it was making her sound?), the media and “remoaner traders” being to blame either.
Re: Who is to blame and why Blame Game Starts
Quote:
Originally Posted by
the other bob wilson
Didn’t something else happen in late September to cause the markets to have a nervous breakdown? This must be a joke right? I see there’s no mention of one or all of the Queen, Keir Starmer and his party, the anti growth coalition (can’t remember Truss mentioning them at PMQs yesterday, has she realised how daft it was making her sound?), the media and “remoaner traders” being to blame either.
The US central bank has imposed its third major interest rate rise in a row.
The Federal Reserve has once again hiked rates by 0.75 percentage points in an effort to curb soaring inflation.
The widely-expected rise will mean more expensive borrowing for the likes of mortgage holders and those paying credit card debt.
American interest rates now stand at 3% to 3.25%, up from 2.25% to 2.5% since the last increase in late July.
It's just one rise in the central bank's plan to raise interest rates to 4.4% by the end of 2022 and settle on 4.6% in 2023, it announced on Thursday. Such a rate would be the highest since 2007.
Re: Who is to blame and why Blame Game Starts
Quote:
Originally Posted by
life on mars
The US central bank has imposed its third major interest rate rise in a row.
The Federal Reserve has once again hiked rates by 0.75 percentage points in an effort to curb soaring inflation.
The widely-expected rise will mean more expensive borrowing for the likes of mortgage holders and those paying credit card debt.
American interest rates now stand at 3% to 3.25%, up from 2.25% to 2.5% since the last increase in late July.
It's just one rise in the central bank's plan to raise interest rates to 4.4% by the end of 2022 and settle on 4.6% in 2023, it announced on Thursday. Such a rate would be the highest since 2007.
Cut and pasted.
