Truss, Kwarteng & Philps continue to dig in. @bankofengland Governor is adamant in warning that the Friday deadline is fixed. Pensions are threatened. The #SecondGreatFinancialCrisis appears to be centred in London, now.
The crux of the crisis seems to be happening over the next 2 days. For credibility, the @bankofengland must stick to its deadline; but if, afterwards, pension fund(s) threaten bankruptcy, will it bail them out? Openly or by the back door?
This week maybe London’s Lehman crisis week, as events unfold. Look for major changes in policies & measures (p&m) over the course of the next few days, as a series of unpredictable (but not unprecedented) financial events threaten or are thought to threaten system stability.
It’s never good for govt to change (p&m) on the hoof, outside the constitution, unwritten or otherwise. It can be an uphill task to reverse them, as when Goldman Sachs in mid-Sept 2008, to add retail financing to its portfolio. The changes may look minor, but they are not.
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