Pension bailouts and Drones buzzing around Oil Rigs in the North Sea

Market intervention never works in the long term

Well that didn’t last long! Yesterday I asked how long will the Bank of England’s (BoE) latest intervention last for. A few months or weeks I asked. I should have said days. Stocks have all gone back in the red and UK bonds (which was the main reason for the intervention) have retraced almost 50% of any gains made from the BoE saying it will purchase on whatever scale is necessary to effect the outcome.

Fortunately, none of the recent events happened during the 10 days of mourning for the Queen. That would have been a disaster what with everything on hold. Suspicious some might say. But not me of course.

The one thing that is “holding up” after the intervention is the price of GBP versus USD. However, as I said yesterday, this was always just following the long term trend and is unlikely to rise above 1.15 before falling again.