Thanks so much for your response! Do you reckon we're going to see a marginal improvement in deal activity/exits because of this?Hi @badmintonflyinginsect I think the effects you mentioned are natural consequences of increased government borrowing. Increased borrowing firstly means an increase in demand for government bonds, which, in the absence of a proportionate increase in supply, results in a decrease in bond price, which leads to an increase in yields. Secondly, increased government borrowing comes with increased defaulting risk, which bond markets price by demanding higher yields as compensation.
On the general interest rate side, an increase of government borrowing can firstly lead to increased government spending, which can be inflationary and thus lead to central banks increasing interest rates. Secondly, rising government borrowing can theoretically have a "crowding out" effect: because of its size, it can absorb a large portion of the economy's lending capacity, potentially leading to higher interest rates across the entire economy, including for private sector businesses and individuals.
Nonetheless, while these consequences follow from an economic theory perspective if you look at this point of fiscal policy in isolation, I do not actullay expect them to end up materialising in practice (at least in a very strong and impactful sense). Firstly, on the yields side: modern governments rise and fall on the reaction of bond markets, as seen with Liz Truss' disastrous mini budget, and this Labour government is very unlikely to take the risk of a similar situation occurring. If there is any wind of a negative outlook as to the country's defaulting risk, this will likely result in further tax rises. Secondly, on the interest rate side, I would not expect this crowding out effect to occur, simply because the UK government has access to immense pools of international public and private capital; and following this post-Covid inflationary period, I think government spending is something that will be a lot more tightly controlled.
Congratulations!!!!Just received an LLM offer from King's College London; a little bit of hope after PFOs...
haffun is the cutest word i've come acrossCongratulations!!!!
You're in for a ride! HAFFUN!
(Which pathway, if I may ask?)
I didn’t hear for two weeks after my wgCongrats! How soon did you receive the TI invite and feedback? I just completed the DLA WG and Im a bit anxious about my feedback report.
Hey!is it worth applying to FF is ac offers r being sent out?
Huge congratulations!!! That's amazing and I hope you celebrate wellJust received an LLM offer from King's College London; a little bit of hope after PFOs...
Hi!For those applying to Skadden, how do we write a detailed answer for the second question ‘if you could choose a career other than the law, what would you choose?’ Is the expectation to explain why that career, our skills or competencies, how they align back to law and/or Skadden, etc? Just seems very confusing hence I left it till the end. I am able to think of a few other careers, but should they be similar to commercial law or something different? Surely I can just say I would choose X career and call it a day but it is asking for 250 words lmao. Any help would be appreciated! Also if @Andrei Radu or @Abbie Whitlock could help that would be great!
Congratulations!!! Is that competitive? I heard that master's degree is less selective compared to bachelor's especially in the UK even though it's RG uni.Just received an LLM offer from King's College London; a little bit of hope after PFOs...
Mission Success 🙏🏾Anyone else pushing the Taylor Wessing application deadline today and regretting not doing it early 😭?
i would've 100% preferred a real WG test lolat least i know how to schedule a damn meeting after that osborne clarke deductive reasoning test (iykyk)
Just spotted a spelling typo in one of the vac scheme applications I sent off. Jesus take the wheel.
I don't think it's necessarily a bad thing. The successful applications from last year have that part. I believe it also comes under the "why the scheme", question.I feel like I majorly messed up the Taylor Wessing cover letter by adding a “why commercial law” paragraph, even though I tried to keep it really short. Could have used the space to expand more on skills 🥲
I really hope so. I procrastinated that cover letter for over a month and literally sent the application an hour before the deadline. 😂I don't think it's necessarily a bad thing. The successful applications from last year have that part. I believe it also comes under the "why the scheme", question.
Especially as a career changer (the firm hires a lot of people from STEM), none can write a cover letter without answering why commercial law.
So I believe that's totally okay.