But was it really the establishment and Bank of England that foiled her growth plans, or misguided thinking and botched delivery? But the ultimate judges of a government's economic decision-making are the financial markets - as they have been throughout modern financial history. In a bid to increase their returns, the pension funds' investment gurus came up with a new breed of asset called a Liability-Driven Investment (LDI). The pension funds paid for these with funds borrowed using their bond portfolios as collateral. It was her decision to rush the fences and, by so doing, alarm the financial markets, that sowed the seeds of her destruction.

Source: Daily Mail May 21, 2024 17:08 UTC