UK At 80% Risk Of Rating Downgrade On Current Debt Plan:PIMCO

stueyhants

We need root and branch reform. Rather than say what can we cut, we need to start from the ground up and say what do we actually need. Once we've reached our budget nothing else gets spent no mater how deserving it sounds.

kabayiri

purch wrote: »

There is no IF with the mad Scotsman.

Doubt what he say's and he will bombard you with 55 new threads in the next hour, until you give up and don't log on for a week.

Hamish is our secret weapon. We just don't know it yet.

Teach him fluent mandarin; give him a juicy bonus to go and post on ChinaHousePrice.com; within 12 months there will be rampant house price inflation in China.

Pretty soon they will be knocking on the doors of English banks, asking for a temporary payday loan for their deposit. :beer:

chucky

stueyhants wrote: »

Are you implying they are shorting Gilts ?

yup - they could be

Traders attributed the blow to remarks by officials at Pimco, the U.S.-based bond fund giant, who said the firm will be a net seller of U.K. and U.S. government debt in 2010.

http://www.marketwatch.com/story/british-pound-weakens-as-pimco-shuns-gilts-2010-01-05?reflink=MW_news_stmp

if you're going to be selling something you wouldn't be announcing to the world when you took past in the last sale only a week ago

El-Erian said PIMCO participated in last week's 30-year Treasury bond auction.

http://www.reuters.com/article/idUSTRE57H3F420090818

stueyhants

chucky wrote: »

if you're going to be selling something you wouldn't be announcing to the world ...

This quote reminds me somewhat of Gordon and our Gold :T

As for Pimco, you could be right as I hope they would have more brains than GB. Watch what they do and not what they say !

Masomnia

mbga9pgf wrote: »

Fingers crossed we will have a surplus... by 2020.

We'll be in another recession by then!

Thrugelmir

mbga9pgf wrote: »

Agreed. No decisions be made, a wasted parliamentary term.

Then the international money markets will react. There is no choice but to address the fundamental issues.

Politicians of all parties may be posturing currently, but are all aware of the seriousness of the problems we have.

HAMISH_MCTAVISH

stueyhants wrote: »

Perhaps we need to start being polygamists, that way we can also have three or more incomes supprting the mortgage

Given that population is growing by 408,000 people a year, and looking at how few houses are built, you may be closer to the mark than you think.;)

HAMISH_MCTAVISH

stueyhants wrote: »

So if Hamish is right and the governement cuts hard after the election enough to satisfy the markets, causing job losses (not sure how you can save 6% of GDP without cutting jobs) which can't be all that good for the housing market.

Or

They don't cut and the markets take this negatively and IRs creep up causing more mortgage arrears etc.

Or

You stop wasting tens of Billions on stupid projects like ID cards, foreign aid, NHS IT projects, etc etc etc etc......

And

You freeze wages, hiring and spending for government departments and let inflation & natural attrition do the work.

Difficult choice, dammed if you do and dammed if you don't.

It's not going to be easy, but it's not going to be Bearmageddon either.

Mr.Brown_4

HAMISH_MCTAVISH wrote: »

It's not going to be easy, but it's not going to be Bearmageddon either.

Thanks Hamish you have reassured me. All other sources of media had painted a confused picture - things might be ok or they might be bad - but your statement is enough to convince me all is well. Good job I logged onto MSE today.

Rinoa

http://ftalphaville.ft.com/blog/2010/01/06/120931/uk-debt-is-still-wanted/

Invertors can't wait to get their hands on government paper as today's gilt auction is covered 2.68 times.