United Kingdom
General community for news/discussion in the UK.
Less serious posts should go in [email protected] or [email protected]
More serious politics should go in [email protected].
Try not to spam the same link to multiple feddit.uk communities.
Pick the most appropriate, and put it there.
Posts should be related to UK-centric news, and should be either a link to a reputable source, or a text post on this community.
Opinion pieces are also allowed, provided they are not misleading/misrepresented/drivel, and have proper sources.
If you think "reputable news source" needs some definition, by all means start a meta thread.
Posts should be manually submitted, not by bot. Link titles should not be editorialised.
Disappointing comments will generally be left to fester in ratio, outright horrible comments will be removed.
Message the mods if you feel something really should be removed, or if a user seems to have a pattern of awful comments.
view the rest of the comments
She's right, that's not funny. I'm still paying a stupidly high mortgage rate because of her.
But pranking her like this and watching the reaction, is indeed really funny.
What did she do to make people's mortgages go up?
https://www.youtube.com/watch?v=0CswZ8Fbl80
Here's a short video summary if you're interested in some hilariously fucked up UK politics.
The first 45 sec of the video will set the stage for you.
So, this minibudget included tax cuts, coupled with a massive increase in government spending, which then caused the currency to devalue. Still don't fully understand how it got this bad, though.
The tax cuts were huge (billions). She didn't increase spending, but didn't decrease it either; so it would leave a huge hole in government finance that would require massive government loans. The "market" freaked out. The pound and UKs credit rating plunged. The main crisis became the gilt market crisis (which was a catastrophe for almost all pension funds and the economy as a whole). This itself is well explained here:
https://www.youtube.com/watch?v=5-FdX0djxAE
(In case you haven't noticed, I think TLDR news make absolutely fantastic videos and would recommend checking out their videos if you are interested in high quality news).
Thanks. I'll check it out in the evening.
Thanks, but how did the pension funds hedge against interest rates in a way that they had to pay up when the interest rate went up?
I have no idea man. My knowledge extends as far as that video. After watching "The Big Short", I've learned that there are a lot of ways that finance bros play the economy in ways that we cannot comprehend.
My hypothesis is that they put the gilts up as collateral so that they could borrow money to invest. So, interest rate goes up, and the value of existing gilts goes down, because why buy a gilt with 1% interest when you can get a new one with 2% interest? Pension funds need to add more collateral to their accounts, because the gilts became less valuable.
Good movie
Tried to force through a budget that brought the UK within hours of a greek style total economic collapse until the bank of England stepped in to unfuck things because it was just going to be that bad if they didn't.