Best of the Week
Most Popular
1. Best Cash ISA Savings Account for Soaring UK Inflation - February 2018 - Nadeem_Walayat
2.Gold Price Forecast 2018 - February Update - Nadeem_Walayat
3.Bitcoin Crypto Currencies Crash 2018, Are We Near the Bottom? - Nadeem_Walayat
4.Trump Bubble Bursts, Stock Market Panic Dow 1175 Point Crash Analysis - Nadeem_Walayat
5.Gold Corrects, Bitcoin Markets Crash, Whilst Stocks Plunge - Nadeem_Walayat
6.US Treasury Bonds: Fuse to Light the Bonfire - Jim_Willie_CB
7.Dow Falls 666 Points As Cryptocurrencies Crash And Krugman Emerges From His Van - Jeff_Berwick
8.Stock Market Roller Coaster Crash Ride Down to Dow Forecast 23,000 - Nadeem_Walayat
9.Trading the Shadows - Oil, Dollar, Stocks, Gold Trend Analysis - B.R. Hollister
10.Stock Market Analysis: Baying for Blood - Abalgorithm
Last 7 days
An Inflation Indicator to Watch, Part 1 - 18th Feb 18
Get on Top Of Debt Before It Gets on Top of You - 18th Feb 18
Will the Stock Market Make a Double Bottom? - 18th Feb 18
5 Reasons Why Commodities Are the Investment Place to be in 2018 - 18th Feb 18
1 Week Later, Stock, Bond Market Risk Remains ‘On’ as 2 of 3 Amigos Ride On - 17th Feb 18
Crude Oil Prices: A Case of Dueling Narratives? - 17th Feb 18
Free 1000 Youtube Subscribers Services - YTpals, Subpals, SubmeNow Test - 17th Feb 18
How to Trade as We Near March Stock Market Top - 16th Feb 18
Bitcoin as Poison - 16th Feb 18
GDX Gold ETF Weathers Stock Market Selloff - 16th Feb 18
Casino Statistics and Demographics - 16th Feb 18
IS Today Thee Stock Market Turn Day? - 16th Feb 18
Huge SMIGGLE Shopping HAUL, Pencil Cases, Drinks Bottles, Back Packs, Toys.... - 16th Feb 18
Tesla Cash Keeps Burning at $320 a Share - 15th Feb 18
Big Conflict Ahead in the Financial Markets - 15th Feb 18
Stocks Extend Rally Off Friday's Low, But Short-Term Exhaustion Near - 15th Feb 18
Stock Market Out on a Limb... - 15th Feb 18
Things Only a True Friend Would Say About Gold - 14th Feb 18
Global Debt Crisis II Cometh - 14th Feb 18
Understanding Crude Oil Behavior - 14th Feb 18
Stock Market is Getting Scary... - 14th Feb 18
Stock Market - This Time is Different. Really?! - 13th Feb 18
Gold and Silver Long-term Buy, Short-term Sell Signal - 13th Feb 18
SPX Futures Are Sliding... - 13th Feb 18
Stock Market Topping Process Begins. The Bubble Finds its Pin - 13th Feb 18
Math Behind the Stock Market Crash and What’s Next – PART2 - 13th Feb 18
Gold Stocks Groundhog Week - 13th Feb 18
Platinum Looks Poised for Surprising Gains This Year - 12th Feb 18
Friday's S&P 500 Stock Market Bounce To Continue, But Selling May Resume - 12th Feb 18
The Inflation Trade and Bond Yields Rising Result in Equities Correction - 12th Feb 18
February 2018 Stock Market Crisis – What Next? - 12th Feb 18
How To Profit From The Bitcoin Bloodbath - 12th Feb 18
The Philippine Economic Dream Could Be Within the Reach  - 12th Feb 18
Is the Stock Market Correction Over? - 12th Feb 18
What Does the Stock Market Decline Mean for Gold - 12th Feb 18
Addicted to SMIGGLE Mega Review, Pencil Cases, Stationary, Back Packs, Drinking Bottles, Toys... - 12th Feb 18
Best Cash ISA Savings Account for Soaring UK Inflation - February 2018 - 11th Feb 18
The Fed’s Impossible Choice, In Three Charts - 11th Feb 18
US Stock Market, Gold, Silver and the Macro Backdrop - 11th Feb 18
After Two weeks of Stock Market Decline, People Are Ssking, “Are We There Yet?” - 11th Feb 18
How to Grow Tomatoes From Seeds, Homegrown Organic Money Saving Gardening - 11th Feb 18
Youtube KILLS ALL Small Channels with New DeMonetization Rules - 11th Feb 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

Hung Parliament Disaster for Britain, Liberal Democrats Holding Country to Ransom

ElectionOracle / UK General Election May 11, 2010 - 12:13 AM GMT

By: Nadeem_Walayat

ElectionOracle

Brit's are starting to wake up to the reality of what hung parliaments mean which is that voters see what they voted for on the basis of party manifestos at the General Election being stripped out of parties programme's for government to result in a mish mash of weak sludge as coalition governments slowly take form in secret smoke filled rooms.


What is more shameful to watch ?

Labour and Conservatives increasingly humiliating those that voted for them as they fall over one another to woe the Liberal Democrats.

Or the Liberal Democrats prostituting themselves to the highest bidder?

The clear and present danger to Britain is that the Liberal Democrats are literally holding the country to ransom, pitting each of the major parties against one another as to which will succumb to Lib Dem whims with regards to electoral reform that would virtually ensure that neither major party will ever win an election again, instead Britain will be forced into perpetual smoke filled room deals that voters will have no say on what policies the governments will actually deliver. This implies a series of weak and short-lived governments that lack vision and substance that pander to the minor parties.

Both Labour and Conservatives should not fall for Lib Dem wolf in sheep's clothing, in fact it would be far better if both major parties do a Labour / Conservative Coalition in advance of another early General Election. Failing that the obvious outcome should be for the Conservatives to go it alone with a minority Conservative government.

A Labour / Lib Dem / SNP / Plaid Cymru / Ulster Unionists coalition would be a complete disaster for the country that the markets would punish severely as the tail would wag the dog and England would be forced to bear all of the spending cuts whilst Scotland, Wales and Northern Ireland would escape virtually scot free, is that democracy ?

Failing a highly unlikely Labour / Conservative Pact or a Conservative Minority government then Britain has no choice but to go to the polls again within the month! We have had our experiment with a hung parliament and it most definitely should be resigned to the dustbin of history.

Unfortunately Gordon Brown is hell bent on going out with a BANG! and could in fact set in motion a sequence of events that would rip the United Kingdom apart which is exactly what the SNP and PC want to happen hence their eagerness to fall over one another to get the Lib Dems and Labour to form a government with them.

Sterling may have bounced from the post election low of £/$1.45 to as high as £/$1.51 as a consequence of market focus on the Euro zone solvency risks. However this bounce is temporary as once the consequences of perpetually weak UK governments starts to sink in, in terms of economic growth prospects and and inability of weak governments to deal with the huge debt burden that demands urgent public spending cuts then the holders of UK debt will take fright and rush towards less risky bond markets which virtually ensures that both UK bonds and sterling are going to suffer, and were talking in the next few days not weeks or months!

Source: http://www.marketoracle.co.uk/Article19378.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Jas Singh
11 May 10, 04:59
Sterling Gold

Nadeem

What about Gold for UK buyers?

Is this a last opportunity to accumulate before we move to the next price level?

Best Regards


Laurence
11 May 10, 15:00
Hoorah!

Fortunately Labour couldn't reach a deal with the Lib Debs partly because of stupifying arrogance.

Now the real battle to cut waste, correct this society's shortfalls and tackle this enormous deficit begins. The Tories were the best choice but will they be able to turn round the benefits culture and disaffected youth. One thing it's going to be interesting and difficult for labour's core support and we can expect many horrors to be discovered when the Tories start examining the true state of the nation's books.

BTW, I am happy. After 13 years of sneaky socialism, no more Blair and Brown. In fact, we have banished Blair and Brown. Tough on socialism, tough on the causes of socialism. Hoorah!


Mehboob Hamza
11 May 10, 15:21
Hung Parliament Disaster for Britain

Hi

Your points are fine but the Electoral Reforms must first pass through Parliament and then a Referendum. If voters say yes, it is democracy. Many countries do manage with Hung Parliament situations. UK will do so too without horse trading as you paint it. Perhaps, there could be a better check in place. However, political landscape must change with clear transparency and performance evaluations of MP's. Maybe, Britain may re-write the rules of democracy to further enhance good government, governance and serving the country rather than party.

Sterling may be doomed, may even touch 1.25 and even below. It has been there before. Nothing new under the sun. Should it go there, its time to be bullish. What goes up must come down and so on, part of the spiral of markets.

Bye

Mehboob


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules