Step 5, Watch the collapse of virtually all private pensions in the UK as their value drops due to heavy investment in various water companies.
Overstated I would say, pensions are heavily diversified.
Step 6, Watch the gilt markets collapse as the UK government is seen as reckless and anti business as it removes assets from private investors.
If the government continues paying interest on the bonds, why would the markets collapse?
manualoverride@lemmy.world 6 hours ago
You know what you’re right “collapse” of the pensions is overstated, but it will hit “low risk” pensions by a couple of percentage points. Low risk pensions options are mostly owned by people in their 60s who are keeping a close eye on their retirement income, and who also vote in large numbers, not the people you want to make clear you are going to take away a few hundred a month for the rest of their lives.
Just today government borrowing went up just because the growth forecast was a little worse then expected. If the government is suddenly on the hook for tens of billions in water infrastructure investment at the same time they are seen as anti-business and willing to rug-pull private investment, you bet foreign governments will sell their investments in the UK.