Category Financial Crisis

The UK crisis: Questions that Must be Asked: How was it allowed to happen?

The UK confidence crisis is not over yet. Chancellor Kwasi Kwarteng is saying nothing, hoping for stability. The Bank of England finds itself providing top cover by its willingness to hike rates. The Treasury Select Committee should be asking what advice the OBR, Treasury, The Bank of England and the Gilts Office gave Kwarteng.

The Everything Sell Off – Triggers and Consequences

Global Markets have nosedived – the UK’s confidence crisis is one trigger alongside rising recession risks, crashing consumer spending and host of indications we ain’t near done on higher interest rates as inflation becomes embedded into economies and dollar strength continues unabated.

Things are never as bad as you fear… are they?

The news looks bleak. A cataclysm of gloom is set to sink Europe and the UK – but, maybe things aren’t as bad as we think. Good news and a realisation things can get better could stabilize sentiment, and build a recovery base. Maybe?

The UK risks losing its status as a sound financially sovereign nation

The UK is at risk of breaking its “Virtuous Sovereign Trinity” of stable politics, currency and bond markets. Collapsing confidence in politics to stem the slide in sterling and thus Gilts, could see the UK stumble into a crippling Sovereign Financial crisis sooner than we think possible.

The Geopolitical No-See-Um threat posed by Chips may be less than that posed by Trump.

Chips are a critical component of global supply chains – there are significant geopolitical risks inherent in the concentration of semi-conductor production in Taiwan. However, an even bigger geopolitical risk may have been triggered by the FBI raiding Trump’s lair in Mar-a-Lago.

Markets, Central Banks, Inflation and the Chaotic Tipping Point

The number of threats facing markets; from inflation, central bank hikes, war, geopolitics, recession risks, corporate earnings and bond liquidity are legion. The big risk is they combine into a chaotic tipping point, at which moment we will just have to pick up the pieces…. Again.