• cRazi_man@lemm.ee
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    3 months ago

    The tax cuts were huge (billions). She didn’t increase spending, but didn’t decrease it either; so it would leave a huge hole in government finance that would require massive government loans. The “market” freaked out. The pound and UKs credit rating plunged. The main crisis became the gilt market crisis (which was a catastrophe for almost all pension funds and the economy as a whole). This itself is well explained here:

    https://www.youtube.com/watch?v=5-FdX0djxAE

    (In case you haven’t noticed, I think TLDR news make absolutely fantastic videos and would recommend checking out their videos if you are interested in high quality news).

    • Saledovil@sh.itjust.works
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      3 months ago

      Thanks, but how did the pension funds hedge against interest rates in a way that they had to pay up when the interest rate went up?

      • cRazi_man@lemm.ee
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        3 months ago

        I have no idea man. My knowledge extends as far as that video. After watching “The Big Short”, I’ve learned that there are a lot of ways that finance bros play the economy in ways that we cannot comprehend.