@@notjustforhackers4252 No because unlike Truss, debt isn't being used to cover day-to-day running costs in order to fund corporate tax breaks. The free market utterly and absolutely rejected truss, while this is merely a normal response. Classic libertarian illiteracy
@TheCam920 exactly absolutely hammered and not even in office! Think of Tony Blairs time, it was constant, then think of Johnsons time and the circus of the last 14 years. Now look at Starmer, the most hated and vilified man on the planet. A labour administration is always hammered by the press more than a Tory one.
@@user-bu9nb8wr6e We're set to be experiencing fiscal drag due to the income tax thresholds being frozen, which causes a drop in demand, which causes deflation in the market.
Well companies could reduce their profits to absorb the National Insurance increase, but they'd rather increase costs for customers and reduce wages for workers. Labour could unveil great policies, but if it depends on companies being altruistic, then the lay man won't see any benefit.
@@tomm2036they raised employer NIC not employee contributions. The end result will be lay offs, stagnant wages and further reluctance to hire new staff. So the already understaffed departments will feel the pain even more now.
@@Contentibus We've had stagnant wages for the better part of 20 years... we're not going to notice any effect this budget may or may not have on that particular front.
The stock market is literally just about emotions. Uncertainty breeds fear and leads bad and inexperienced investors to panic. It will settle down within weeks if not days
@@TomTomicMic National and corporate debt is not a bad thing and works entirely different to how it works on an individual level. Many companies and nations have a vested interest in our success, otherwise they don't get their billions back from us.
Stocks and shares will settle down but the Bond Market is a little different. They are sending a signal that they have doubts about Reeves financial planning.
No more than usual. The world got out of the great depression by increasing public spending. Your view is simplistic and narrow. Comparing government borrowing to thT of a household is ridiculous
How about some credit for Ed Conway for that superb presentation. I'm not sure it's possible to explain complex forecasts and market reaction any clearer or more concisely to the average viewer than he managed in that 5 minute segment, that was great stuff no messing around
@@jamietherooster Liz Truss didn't force the market to do anything. Her budget ended up being shredded by numerous financial institutions (rightfully so) and that caused investors to sell in order to mitigate losses.
This is classic tax & spend isn't it, which usually never ends well. The UK is up to its eyeballs in debt, so no surprise the markets are uneasy about increasing the debt. Also, there is literally no wiggle room, we after hope no crisis comes along for at least 5 yrs.
The UK is up to its eyeballs in debt that’s why they change how they measure debt so they could borrow more 🤦 it’s like a crack addict convincing themselves buying larger amounts of crack will shake the addiction.
Bond yields going up = some wealthy people pressing on the scales, not loving crackdown on foreign wealth, capital gains, and private jets. They'll be working all the big tech algos to get their message across.
@@shponger-q7o They can do what they like, but at the end of the day all of their assets are tied to the UK and they won't spoil their billions over a bit of extra tax.
@@TheCam920Virtually nothing 😂 Yea right!! Is that why Reeves favourite line is ‘the 20 billion black hole!!’. We shouldn’t sending any money abroad. We’ve done it all my life and what do we get, ‘U.K. is the most racist place on earth, white man bad, give us reparations!!’ Sick of it, time to look after our own country. Repatriations!!
@@jackdubz4247 We can't continue to view things as Labour vs. Tory. They're both as bad as each other because they're controlled by the same set of globalist donors. Until we break out of the two-party system things will continue to get worse.
Send more money to Ukraine. War mongers has disrupted supply of grains, fertilizers, energy and raw metals. Everybody has to face consequences in years to come. People in EU and UK are most vulnerable.
Whatever happened, as the A team for corruption, insider trading and backing against the the country's prosperity have been replaced, there was always going to be market manipulation to feign discontent, where in reality very little has changed, price gouging the population will continue and profits will continue to flow.
Markets will recover as they always do. This is not a mini budget. This is serious government. They did what I wanted them to do which was invest in the state. I feared during the election that they wouldn’t and we’d be stuck with the same failed Tory economics. Credit to labour. Hopeful!
@@chilliboy99unions have better negotiating power due to their numbers to fend off corporate from lowering wages. They can threaten to go on strike to cause more financial pain compared to the increased cost of labour caused by the employer ni increase
It's about time businesses started to contribute more. Workers have suffered what with austerity, redundancies etc. Well done Labour. Bout time we started to get our country back.
@@sirrathersplendid4825 The market is based entirely on how people "feel" it's incredibly stupid. Only non-investors and insecure people think there's any intelligence involved
@@jamesarnold7253That they worked hard to prop up. It's not their fault that globalists hijacked the prosperity they helped create, while we look after illegal immigrants and refugees better than we do our elderly because the elderly don't provide cheap labour for the elites. Being bitter towards average oaps is just sad, the globalist elite that Starmer answers to are the real cause of all these problems.
Time to give up! My Grandmother taught me to NEVER vote for a Labour Government. She was far more intelligent than most. I have always followed her advice thank goodness!
Yes mate! Last 14 years have been amazing with the tories. Get this labour lot out and let’s get the rightful heirs to the country back in. Tory rule forever!
It really isn't. Liz Truss could have collapsed the whole economy if the Bank of England hadn't stepped in to stop the gilts going mental. This budget will only really hit farmers and some large employers. We have one of Europe's lowest corporation tax rates though so an additional 1.2% of NI +£40 per person per year should be survivable.
@@suecharnock9369 The line goes down one millimetre for one day and trussites come out of the woodworks again to praise their discount thatcher. Back to your gooncave
What a surprise, people who make money off others for doing next to nothing are upset that people who really work, will see something for their efforts, NHS etc Peace
To be honest as a 23 I’m annoyed at the increases in taxes going to the NHS, which will be aimed at helping elderly people more than young. I’m very glad the blood scandal and the post office scandal are finally being paid and can be put behind us. With the victims can be left to deal with the consequences rather than the bill of the illnesses. I’m annoyed this bill was not paid earlier with liz truss because compensation has increased for the last 10 years and could of saved billions.
It not borrowing as the public understands it though is it Tell me who is the govt /BofE borrowing from ? The govt could cut debt interest to zero by cutting base rate to zero
Yep sure is liebours fault the tories crashed the economy. The markets acted so positively when the tories budget was revealed, oh no my mistake instant recession.
@@ML-or2ot Borrowing is necessary to raise funds for public investments. Governments issue bonds, bonds can be bought by basically anyone, many people such as myself own bonds, and when the bonds mature the money is paid back to the buyer with interest. At a national level, debt can be a good thing because it means that other powerful parties have our best interests in mind, because they need to make sure they get their money back
Imagine being a journalist covering finance and NOT knowing where money comes from........oh yeah, just like the rest of the population. Where does money come from? Go on, be brave and try to answer this very very very simple question.
Interest rates will go up soon that's for defiant. maybe everyone who has a mortgage or a loan from a Bank with worry in the near future?. Some one has to pay for the borrowing the government is doing. And as for employers national insurance going up, this will have to be paid with jobs employers will also defiantly cut jobs. Some companies will now move abroad also more jobs gone. Those that don't think any of this will happen then just wait till next year. The pound is already going down considerable interest rates will go up.
Money is being invested for returning assets. The markets and the wealthy may complain now, but they’ll be happily cashing in the cheques in a few years.
I'm favoured only God knows how much I praise Him, $230k every 4weeks! I now have a big mansion and can now afford anything and also support God’s work and the church.
Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!
I earn from investing in the digital market with the guidance of (Ms. Evelyn Vera) Brokerage services. I remember giving her my first saved up $20000 and she opened a brokerage account with it for me, it turned out to be the best thing that ever happened to me.
*_What's that? The budget caused panic in the markets? I presume the PM and Chancellor will be drummed out of office? Or doers that only happen when Tories suggest tax breaks the central banks didn't agree to?_*
Last time Labour were in power, it ended with the great financial crises. My bet is this time it'll be a government debt crises thanks to Reeves or an energy crises thanks to Ed Milliband. An energy crises would result in a debt crises, given how fragile our finances are. Exciting times ahead! 😂
After 10 years of extremely strong growth, and only ending due to a crisis Labour was not actually responsible for or could have policed against. It was a US crisis, but other countries felt the effect as well.
@@mart34 How is that labour's fault, the GFC was literally caused by wall street investors hedging bets against the banks. The entire world suffered for that
The budget and thos government are awful. But the market didn't tank for that, the market is rigged. The market will tank tomo on non farms pay rolls in America too then rise on monday
Very good breakdown of a topic most people won't quite. Worth nothing the gilt yield issue with the mini budget was because of a technical requirement from some defined pensions causing a sell off, surely, as a neophyte in the field, this means teh technical requirements were based on poor logic
Tldr. Spending is going up + good things money is being spent on is going up = we are spending money so more good things can happen. Sounds good to me.
@ a minor uptick in borrowing is not the same as over supply of money. There’s a big difference between a modern Fiat currency and the old gold backed Deutschmark
