Politics Election 2019

[Tom]

The revelation that many pension funds were in serious danger is actually quite worrying, in the sense that there's fuck all I can do about it. I have a private pension with Scottish Widows, not a huge amount, around average for my age, but I don't know if that might have been affected. Pointless calling them because they won't tell me anyway, but would my private pension be covered? Online searches suggest yes, but it isn't that far off the limit.

There's probably quite a lot of people with a much larger pp than me, can you imagine how it must feel to realise that the fund you've been saving and investing the last 40 years might just have disappeared into the aether?

Fuck these idiots.

 

[Wij]

The revelation that many pension funds were in serious danger is actually quite worrying, in the sense that there's fuck all I can do about it. I have a private pension with Scottish Widows, not a huge amount, around average for my age, but I don't know if that might have been affected. Pointless calling them because they won't tell me anyway, but would my private pension be covered? Online searches suggest yes, but it isn't that far off the limit.

There's probably quite a lot of people with a much larger pp than me, can you imagine how it must feel to realise that the fund you've been saving and investing the last 40 years might just have disappeared into the aether?

Fuck these idiots.

Been putting loads into my Royal London pension for years. Had a decent pot. It’s probably fucked now. Tories need to be drowned in shit.

 

[Wij]

I mean properly dead too.

 

[SilverHood]

The pension stuff danger is kinda weird, because you would expect a pension fund to be the most stable of investment vehicles. Their time horizons is 20+ years. You can't withdraw money from outside of the established mechanisms, so in theory, they'd be one of the safest places to put your money. The problem, as I understand it, is that to make up for accounting quirks of double entry book keeping, they borrow money to generate excess returns to decrease how underfunded they are. They hedge against interest rates movements, but their hedges being unwound caused more Gilts selling pressure, forcing them to unwind yet more hedges, driving Gilts pricing down even further. It's a death spiral, and so BOE had to intervene to stop it. From what I'm reading, it's still unwinding, and you'll see the repercussions in the next few weeks.

The whole thing is massively dumb though. Some Canadian pension funds got burned hard a few years ago because they were pursuing a short term strategy that while risky, provided very good returns for years. Until market turned, and they lost a fuck-ton of money in a single week. Pension funds should not be doing risky short term investments. They think they're sophisticated investors, but they rarely are.

America has this mechanism called a 401k. It's kinda clunky, but essentially, it's my private pension pot. I put money in each month, my employer matches it. That money is mine, protected by law. If the provider goes bust, my money is federally guaranteed. I chose my investment options and check in once a year to see how it's going. When I turn 65, I can withdraw it. Tax is paid on the money when you withdraw, rather than when you earn it, so you are deferring taxes, which makes it a bit more attractive to put money away early in your career.

 

[Wij]

I was a Tory MP, but Truss and Kwarteng have convinced me to vote Labour | Nick Boles

Labour is the only party that can lead us out of this mess, says former MP Nick Boles

www.theguardian.com

 

[Scouse]

Environmental destruction is part of Liz Truss’s plan | George Monbiot

The prime minister’s ideology encourages the extraction of as much income as possible from nature, says Guardian columnist George Monbiot

www.theguardian.com

 

[Raven]

The OBR folk met with Truss and Kwarteng, it lasted 45 minutes...

That went well then.

 

[Wij]

Mini-Budget. Major Catastrophe.

How much have Truss and Kwarteng cost the country so far?

kamikwasi.tax

 

[Tom]

As a desktop user, I hate that website.

 

[Wij]

As a desktop user, I hate that website.

I think you aren't the target

 

[Bodhi]

Where's @Bodhi when you need him. I'd dearly love his take on the economic disaster that the Tories have foisted upon us.

Still the safest pair of hands?

In Switzerland if you must know, been a bit busy to check what the Morning Star forum has to say on stuff.

However it appears we aren't in recession after a small amount of growth in Q2, and the Pound is sitting at $1.11 which is above where it was on Friday. It also appears everyone's energy bills are covered for the winter, and those of us who pay tax will be doing less of that.

Seems pretty good to me tbf. Shame about the imminent arrival of WW3, but then you can't have everything.

Anyway, back to the restaurant on the shores of Lake Geneva. Sante!

 

[Scouse]

However it appears we aren't in recession after a small amount of growth in Q2

Tiny amount of growth in Q2, maybe - and behind our peers (again).

the Pound is sitting at $1.11 which is above where it was on Friday

Thanks to the Bank of England restarting QE.

It also appears everyone's energy bills are covered for the winter

That's what Liz said, but it's not true. There's a maximum per-kilowatt hour cap - which is still hewuge.

and those of us who pay tax will be doing less of that

Thank fuck - although it won't make up for the loss in the value of the pound ($2 in 2007, $1.60 in 2014, $1.40 just last year...) - making everything we import more expensive (inflationary!).

Seems pretty good to me tbf.

Of course. The fanboi in you is unshakeable

Anyway, back to the restaurant on the shores of Lake Geneva. Sante!

Pics!

 

[Bodhi]

This was you sexy correspondent earlier. Bit dark now and we're leaving for the airport shortly.

 

[Wij]

In Switzerland if you must know, been a bit busy to check what the Morning Star forum has to say on stuff.

However it appears we aren't in recession after a small amount of growth in Q2, and the Pound is sitting at $1.11 which is above where it was on Friday. It also appears everyone's energy bills are covered for the winter, and those of us who pay tax will be doing less of that.

Seems pretty good to me tbf. Shame about the imminent arrival of WW3, but then you can't have everything.

Anyway, back to the restaurant on the shores of Lake Geneva. Sante!

Wait till you check your pension. You’re in for a treat.

 

[Raven]

This was you sexy correspondent earlier. Bit dark now and we're leaving for the airport shortly.

View attachment 46979

Half asrsed beard, would not subscribe.

 

[Wij]

Half asrsed beard, would not subscribe.

Onlyfannies

 

[Bodhi]

Onlyfannies

Shush onlywanking boy.

 

[Tom]

the Pound is sitting at $1.11 which is above where it was on Friday.

It only cost 65 billion pounds to do that. Our 65 billion pounds.

Think how many Playstations you could buy with that.

 

[Wij]

It only cost 65 billion pounds to do that. Our 65 billion pounds.

Think how many Playstations you could buy with that.

Actually not quite. Pretty sure they printed that money. That has consequences though. It’s inflationary. But so is the weak pound.

 

[Raven]

Actually not quite. Pretty sure they printed that money. That has consequences though. It’s inflationary. But so is the weak pound.

Tories don't give a fuck.

 

[Scouse]

Actually not quite. Pretty sure they printed that money. That has consequences though. It’s inflationary. But so is the weak pound.

They printed the money (spreadsheet). In the same way banks magic it out of their arse every time they give you a loan.

It's unpayable, of course. It can never be paid back. But we still have to try.

It's all bent. And people worry about crypto.

 

[Wij]

They printed the money (spreadsheet). In the same way banks magic it out of their arse every time they give you a loan.

It's unpayable, of course. It can never be paid back. But we still have to try.

It's all bent. And people worry about crypto.

It not being the same as a current account does not make it bent. Fiat money is infinitely superior to the gold standard despite what zerohedge might wail about.

 

[dysfunction]

Wait till you check your pension. You’re in for a treat.

Well that would only be temporary. And depends how long you have left until you retire.
So if you're still investing into your pension you will be buying more shares for less money now and when the markets pick up your pension pot will look pretty good again

If you're close to retirement it could be problem but then most of your pension pot should have been moved to something less volatile than shares.

 

[Wij]

Well that would only be temporary. And depends how long you have left until you retire.
So if you're still investing into your pension you will be buying more shares for less money now and when the markets pick up your pension pot will look pretty good again

If you're close to retirement it could be problem but then most of your pension pot should have been moved to something less volatile than shares.

Not necessarily. If they are rapidly swapping assets for cash the size of the pot may take a permanent hit.


View: https://twitter.com/FinancialTimes/status/1575837761763942405

 

[Gwadien]

The Liz Truss 'Saving Energy' Breakfast.

 

[Raven]

Tory conference: Michael Gove hints he will vote against Liz Truss's tax plan

The top Tory says Liz Truss's policies are "not Conservative" but the PM says they will boost growth.

www.bbc.co.uk

Gove positioning himself carefully as usual! Though rightly it seems, for once.

 

[dysfunction]

Oh hello major u-turn

Kwasi Kwarteng U-turns on plans to scrap 45p tax rate

Kwasi Kwarteng says the proposal was "drowning out a strong package" to boost economic growth.

www.bbc.co.uk

 

[Scouse]

I wonder if they only put it in there so they could say "see - we listen".

 

[Embattle]

Seems this lady is for turning, don't think it'll change much.

 

[caLLous]

I wonder if they only put it in there so they could say "see - we listen".

Except they didn't listen for 10 days until it became clear it wouldn't get through the vote.