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muriel_volestrangler

(104,170 posts)

1. "Investors regard the Tories as a doomsday cult"; and the "moron risk premium"

Fri Sep 30, 2022, 10:29 AM

Sep 2022

Paul Donovan, chief economist of UBS Global Wealth Management, delivered a blistering assessment of the Tory UK Government's fiscal plans as the pound plummeted to a record low on Monday morning.
...
"Modern monetary theory has been taken into a corner by the bond markets and beaten up.

"Advanced economy bond yields are not supposed to soar the way UK gilt yields rose. This also reminds investors that modern politics produces parties that are more extreme than either the voter or the investor consensus.

"Investors seem inclined to regard the UK Conservative Party as a doomsday cult."

https://uk.finance.yahoo.com/news/tory-party-likened-doomsday-cult-121323283.html

"The problem isn't that the UK budget was inflationary, its that it was moronic. And a small open economy that seems to be run by morons gets a wider risk premium on its assets - currency down, yields up "

"But at a guess, the moron risk premium has now been priced in."

That's Paul Krugman, Nobel Laureate and NYT columnist, replying to Dario Perkins, ex-Treasury economist and now economic forecaster, specialist in central bank policy.

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"Investors regard the Tories as a doomsday cult"; and the "moron risk premium" muriel_volestrangler Sep 2022 #1

Kwarteng is scary; he would make George Osborne look reasonable LeftishBrit Sep 2022 #2