I had not looked at it from that point of view, but, the only new thing for the markets in the KK speech was the reduction of the top rate of tax. The major change has been that the possibility of a Labour led government increased as the conference bounce kicked in. Still have to remember it is highly unlikely, though not of course impossible, that there would be an overall Labour majority so the possibility of a Lib Lab pact is possible as even their few seats could hold a balance. Of course it remains to be seen what deal is cut with the SNP.

Anyone who forecasts in such uncertain times is guessing

Responsibility Deficit Disorder is a medical condition. Symptoms include inability to be corrected when wrong, false sense of superiority, desire to share personal info no else cares about, general hubris. It's a medical issue rather than pure arrogance.

The markets care first of all on how much borrowing because of the tax and spend. Then it’s the tax and spend. They didn’t need to get to the tax and spend to decide what to do because it didn’t balance up and tfeee will be lots of borrowing, although I expect more money to savers than spenders went down quite badly as a confirmation that 1) this is crazy, and 2) Truss is mad enough to believe whoever told her to carry out this ideology at this time.

COYP

I was in attendance at hustings and I can assure you there was a significant number of members, certainly not that ripe in age, who were attired in Truss T-Shirts and stickers and who were vociferous in support of our new PM.

Edited by Willo (29 Sep 2022 8.48am)

The markets, along with all objective observers, had assumed that Truss's campaign promises, made to get her the job via a tiny ill-informed electorate, would be tempered by common sense, realism and sound advice as soon as she faced the responsibilities of office. Rushing headlong into a maelstrom, rather than keeping your head down, just because you previously said you will, is the height of stupidity.

Announcing a desired general direction of travel, when circumstances permitted, would not have panicked the markets and created the situation we are now in.

Truss has clearly demonstrated why she was not the preferred candidate of those she now leads, and why the way a PM is chosen between GEs must change.

For the avoidance of doubt any comments in response to a previous post are directed to its ideas and not at any, or all, posters personally.