Lazzard
Friday 30th September 2022 3:15pm [Edited]
Ludlow
8,926 posts
And just for clarification, the reason the new figures suggest that the economy is NOT in recession is that they'd underestimated how bad the economy was doing before. So, yes , there has been growth, but from a much lower base.
We're still doing worse that all the other G7 economies in terms of recovery - the only one to still be below pre-pandemic levels.
And these are not cherry-picked facts - they're from Aaron's article he kindly shared.
The Truss budget required the BofE to step in with a £65 billion purchase of govt bonds - at really poor value prices - to stop a disastrous collapse of pension funds.
Hundred of mortgage packages have been withdrawn, in the belief that interest rates will have to rise again.
Anyone about to come out of a fixed rate deal is in for a shock, which will be passed on to business in reduced spending - hence FTSE takes a dive, predicting poor business results.
Truss and Kwazi have a meeting with OBR this AM, and the pound drops AGAIN when it turns out we're going to have wait for the Office of Budget Responsibility report for there best part of 8 weeks - even though it will be delivered Monday week - that's because they're gambling on the market settling before the next bit of bad news.
It's all gamble. But with our money.
It's all upside for them and their ilk. You and I, not so much.
And if you think Labour's 33 point lead is bad now, wait till the inevitable cuts to services are announced.
The markets won't let them get away with borrowing all that money without making cuts too spending.