Hey Guys, Last week was one of the most tumultuous weeks in t | Coin Bureau Insider

Hey Guys,

Last week was one of the most tumultuous weeks in the UK's recent history. That came in the wake of the new UK Chancellor's budget speech which saw the financial markets completely dump the pound. It fell to near all-time lows against the dollar.

However, it was what happened in the UK gilt market that had most people concerned. That's because the selloff in these assets was causing severe credit issues for several investors who employed LDI strategies. The largest group of investors who did this were pension funds and these collateral calls were leading to a self-fulfilling cycle of crashing gilt prices and further margin calls.

This got so bad that the Bank of England had to take the extraordinary step of pumping £65 billion into the market to help alleviate the credit squeeze.

However, this came at a time when the UK is going through some of its worst inflation in decades - something that is only going to get worse with the falling pound.

This all means that interest rates are going to have to be raised even more aggressively in the coming months. However, can the UK economy handle that? What about the impact that this is likely to have on people's mortgages?

This is all covered in my video today.

Enjoy!