Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#1
.....in theory is AAA, with S&P, but market traders are treating the UK as if the rating was a lot lower....
Italy, a country rated only A+ by S&P is having to pay gilt yields of 4.03%
The UK is having to pay 4.07% on government gilts.
To put it simply, the markets think that the UK at AAA is at least as high, or higher, risk as A+ Italy.
This is a hint of much greater problems to come if, after the election, the Government does not come up with an immediate start to deficit reduction.
That means cuts to services and/or higher taxes.
If the issue is not tackled immediately the costs of borrowing will soor causing the need for even bigger cuts/tax rises. This is why a start MUST be made now just as Cameron and Osborne say.
(source: Financial Times)
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
#2
Talking of taxes, which conservative lord it thats avoiding paying UK taxes????
something D Cameron was against, now because this Lord is bank rolling the tories, it's all ok!!
double standards?
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#3
Lord Paul... ohhhhh but he is a Labour Lord of course...
This is another example of extreme hypocracy from Labour of course. They target Ashcroft who is using perfectly legitimate tax planning, as allowed by this present Labour Government, while igoring their own Labour Lord Paul who is doing exactly the same thing....
And as for 'bankrolling' the Conservatives.... Do you call 2% of funding 'bankrolling', hardly. Even the so called Ashcroft donated money for marginals is only 19% of the funds spent in the marginals. Labour shown up for what they are yet again.
#4
There was a long list on "Non Dom" Labour donors announced on tv this afternoon. If I were Gordie Darling I'd tell my MP's and supporters to "shut the ...... up" about this.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#5
So true Sid.
I was also but too kind to Labour in my weekend blog, I said that the level of GDP had stayed the same in Q4 and the so called growth was because of a revision down in the previous quarter (Q3). In fact the level of GDP fell, it did not stay the same so we are worse off than we thought when the Q4 figure was published showing a 0,1% growth.
I expect a further revision down and Q1 to be very poor indeed.
Not that sterling has fallen again.
Brown's 'great recession' is much worse than any of us ever thought it would be.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#6
sterling took a battering today.
all over the possibility/probability of a hung parliament.
the money people in the city usually "chuck a wobbly" at the slightest thing, but surely DC and GO must take a large share of the blame due to their recent prevarications leading to loss of confidence in the blues getting elected?
i am seriously considering "upping sticks" and taking my vast wealth overseas and settle in belize.
#7
Thus securing your knighthood, Howard.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#8
Love the way you try to shift the blame to Conservatives howardm, when the weakness of sterling is all to do with Labour incompetence and the state of the nations finances.
One hint at the possibility of a hung Parliament and the markets suffer. Good job a Labour win is not on the cards, they would nose dive...