Gilt Trip: Did UK government bonds almost blow up the financial system?
Many Happy Returns
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The Moron Premium
The moron premium is the additional premium which you have to pay because of mismanagement by the government. It's pricing in a political risk effectively, and I think a populist government will have to pay more if they're going to issue in the debt markets. The original proposal was the government was going to cap consumer energy prices for the next two years. What they've done is said, we're actually only going to guarantee that for the next six months. After that, we will make it more targeted so it's not for everybody. They don't know exactly what they'll do yet. And that's going to have a cost for consumers.
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