[bko]

> The BOE decided to intervene to get ahead of a potential crisis that could have hit within hours. It was concerned collateral requirements on liability-driven investment strategies, such as those at pension funds, would have turned many into forced sellers of long dated gilts, according to a person familiar with the situation.

I often hear people complain about the end of defined benefit pensions, but this is what inevitably always happens. There will be essentially bailouts, printing billions, leading to inflation, weakening the currency. Why? Because someone made an irresponsible promise to someone 30 years ago knowing they won't be around when it hits the fan. And now we all have to rearrange out entire economic system to accommodate them. And these people are all gone by now, no one to hold responsible. What would responsibility even look like? Firing someone?

[mistrial9]

According to urban legends, in the events leading to the 2007-8 western financial crisis, when loans from lenders like Washington Mutual were being handed out by the dozens to clearly unqualified borrowers, there was a short acronym that was repeated on notes and word of mouth between dazed and skeptical financial employees IWBT-YWBT

I won't be there - You won't be there

literally meaning, the due date for these loans and the trouble they are making, will occur after you and I, fellow white collar worker, will be long gone.

In the years following those famous financial events, a large scale opioid medication abuse pattern emerged across the USA. What could be clearer in hindsight?

some people refused to participate, and some people profited, and far, far more people were financially damaged in a way that lingers today in the USA and elsewhere.

[than3]

This is all by design.

You seem to misunderstand and think those people that promoted those things are already dead. They aren't. Its why they continue pushing for the bailouts. They've held onto power, and the cohort is starting to crumble.

You can't fire anyone in government, its a longstanding structural issue with why it underperforms in just about every way.

[JumpCrisscross]

> is all by design

This is a comforting thought, but no. It isn't. These are complex, dynamic systems with emergent properties navigating a landscape which is itself complex and dynamic.

[than3]

It can be by design and also be complex and chaotic (i.e. both), and the cycles we are seeing have happened before.

They just have not happened in our lifetime, its surprising how few people bother reading and understanding the value of history.

As for what this action means, there was a time for course correction, for them to act, and that time has come and gone. Instead they tripled down on the failing strategy of kicking the can down the road for a short term extension.

That leaves a knifes edge between currency death by hyper-inflation, or currency death by deflation (which follows inflationary stagflation).

Both lead to unrest from the breakdown in the division of labor and energy markets often see it first since the cost of everything is derived by energy for transportation.

It astounds me how many politicians and policy makers think they can just kick the can down the road without any consequence following a strategy of I won't be around when it comes due. The bill for debts always comes due.