Hung Parliament it is!!

The markets responded today as I suggested. A fall of over 2.6% today and more than 10% in the last week or two.

Of course the falls aren’t all about the election, with big concerns about the situation in Europe.

The pound has fallen sharply in currency terms due to the election situation. The markets are very concerned about the desirability of UK Govt Bonds and hence the ability of the UK Govt to repay its debt and end up like Greece, Portugal and Spain. A hung parliament may mean the inability of an acting Government to impose new legislation to ensure the UK recovers quickly from the recession.

These are very real concerns and should not be underestimated. However if the Tories can forge a coalition with the Liberals, quickly, these concerns may be short lived.

One big problem is that Gordon came to power by his own choice and not by choice of either his party, his party’s supporters or the public. He has bullied off two attempts to remove him by his own party, so he is unlikely to go quietly.

In this case it is vital the Country comes first and not Gordon’s personal desires so it is incredibly important for Cameron and Clegg to do a deal quickly giving Gordon no choice but to pack his bags and move out of No.10.

The next couple of days are crucial so fingers crossed as our investments and pensions are paying the price yet again for Labour’s failings.