Bond markets - is the shit hitting the fan?

[LawdAMercy]

People who know about these things - AIBU in crapping myself about the future of the UK and the possibility of global financial Armageddon?

no mumsnetters into economics? Or clearly just less neurotic than me

The Baltic Dry Index is the one to watch. If there are no raw materials being traded then the global economy is stuffed.

Yes but the say i see it, is that people really running things dont want to lose their money so will have to step in at some point.

I wouldn't trust Burnham with the tuck box money personally.

I wouldn't trust Burnham with the tuck box money personally.

Me neither. He hasn’t got a Scooby. The bond market doesn’t think he has, either, judging by the prices.

and that is why I took my money out before the Makerfield byelection. Hold on we are in for a bumpy ride.

I’m nervous.

He's interested in the idea of growth not the practicalities. I did have a chuckle when he said his government is going to be fiscally responsible. That's an oxymoron for any Labour party.

So where was your money, and where is it now?

Things never been there same since Connery left in my honest opinion, yes things picked up with Brosnun but still didn't compare to the good old days. What with shrinkflation you'll be lucky to see a full pair of budgie smugglers again

😆 🤣 😂

Yes it is and flip flopping, gimmicky Burnham is not the man for the job. Doesn't really matter though because the bond markets will force him to slash spending on welfare etc, the Labour Party will hate him and he will be gone in a year or two.

I'm pretty sure that Trump, Iran and Russia are MUCH bigger influences on the bond market than Burnham!

Nice try Andy

Personally I’m fed up of the influence of ‘bond markets’ and private investors. I wish we could bring back the awareness of the need for public investment and the problems of inequality that existed in a lot of different financial institutions - like the OECD - that existed in the 2010s, before the Tories used 2008 as an excuse to bring on their empty ‘austerity’ and create ever more billionaires out of public funds.

If you think Trump, Iran and Russia are a bigger influence, why is the UK in bigger shit than France and the US who have borrowed more? It’s because we cannot generate growth because we refuse to rip up planning laws and get construction moving, we refuse ditch net zero and get our energy costs right done, we refuse to sort out spending.

If he waded in yesterday and said he was ripping up planning regs and ditching bat tunnels etc and was ditching the triple lock we’d finally start moving in the right direction. But he didn’t cause he’s weak and ineffective. So we are indeed in the shitter.

That costs money so you’d have to borrow money and we’ve already maxed out the credit cards. If we borrow anymore it looks more like we’ll default so our interest rate on the bond gets ever higher. We spent 1/10th of the entire UK budget on debt interest this year. About £100bn. Just think what that money could be spend on if we managed to reign in the spending of money we don’t have.

If we lived within our means and didn't owe the bond markets £3 trillion, they wouldn't have such influence. Spending needs to be slashed but no Government, red or blue, has the balls to do it. So it will be forced upon us.

The problem is the the vast majority of MP’s are actually fucking stupid yet all without fail think they are brilliant
Until they get to grips with the triple lock and welfare spending in general we are fucked.

Apparently one of the back bench Labour MPs was overheard by a Telegraph journalist after they’d just sunk the welfare reforms saying to a colleague ‘well I don’t understand why we can’t just borrow some more’. This is the issue. Too many fiscally illiterate MPs not wanting to make decisions that needs to be made cause they want to be kind instead..

It feels like the AI bubble is going to burst soon and everything is just going to go to shit. No I don’t trust Andy Burnham with the countries finances either!!

Ok, so hands up I'm a bit thick when it comes to this stuff. But haven't there been predictions of Armageddon for ages...what will it all mean for interest rates and my mortgage? Yes I've googled but would be grateful for clever mumsnetters cutting through the hyperbole and rubbish

When the bond markets rise your mortgage rate will rise. Liz Truss made some disastrous unfunded pledges (massive tax cuts) the bond market lost confidence in her ability to make repayments on the UK debt interest so charged her much more putting everyone’s mortgage rates up. Today the bond repayments are far higher than even that. It would be flippant to say Andy Burnham is worse than Liz Truss, but he’s not doing better. He needs to convince them he’ll reign in spending and boost growth. He’s doing a very bad job of that indeed.

Thank you. That's really clear, even for me ;)

It was in a stocks and shares ISA now sitting in a bog standard savings account.

Why didn't you transfer it to a cash ISA instead of a regular savings account? Cash ISAs aren't tied to the bonds market are they?