WHen is this double dip thing supposed to be happnening ?

bitemebankers

I don't know why the markets are so against a hung parliament. But from the point of view of most retail businesses, the prospect of a Tory government is a bit worrying because of the possibility that they'll go too far on austerity measures. If it's either a Labour win or a hung parliament, I expect it'll be business as usual for the next few years, so at least we can survive. Slow growth, a few setbacks, but most decent businesses will make it.

Masomnia

RayWolfe wrote: »

By whom and why?

The gilt markets did get jittery when the news came that the gap between the Tories and Labour was closing and could result in a hung parliament.

I think the reasoning is that the people who hold our sovreign debt want reassuring that our finances will be put in order (or at least a plan will be put in place) as soon as is possible after the election is over. If there's a hung parliamnt and the government that results struggles to put in place a plan to deal with the deficit the markets won't react well.

blinko

swo basically everyone is waiting till the election, but goivernment spending will need to be regined in anyway

but it sounds like you guys recklon if tories get in the economy will suffer more

lvader

The economy is going to suffer, it's just a question of how long we let it drag along for. Plus the longer we leave it the more debt is going to build up. If it was up to me I'd have already started to cut public spending.

RayWolfe

Masomnia wrote: »

The gilt markets did get jittery when the news came that the gap between the Tories and Labour was closing and could result in a hung parliament.

The guilt market gets jittery over everything ... and for every buyer there's a seller! How do we know that the narrowing of the poll gap caused the effect. Read any commentary on any day's trading, and it's all speculating by journos. You and I may sell on the same day, at the same hour and our reasons will be totally different.
And the day that we allow the market to determine who we elect and in what quantity will be the end of democracy.

bigheadxx

The government has effectively created the conditions to tip the country back into recession as soon as the conservatives have won the election.

VAT increase, stamp duty, car scrappage, announced tax rises, will all start to take there toll on the economy in June/July.

I think labour is pinning its hopes on a hung parliament with a minority tory government which can be blamed for tilting the country back into recession by its "austerity budget" and be blown from office by the end of the year. (Similar to 1992 where it could be said that it was in the interests of the conservative government that labour won, formed a minority government and was swept from office on Black Wednesday, which was inevitably going to happen)

StevieJ

bigheadxx wrote: »

The government has effectively created the conditions to tip the country back into recession as soon as the conservatives have won the election.

VAT increase, stamp duty, car scrappage, announced tax rises, will all start to take there toll on the economy in June/July.

I think labour is pinning its hopes on a hung parliament with a minority tory government which can be blamed for tilting the country back into recession by its "austerity budget" and be blown from office by the end of the year. (Similar to 1992 where it could be said that it was in the interests of the conservative government that labour won, formed a minority government and was swept from office on Black Wednesday, which was inevitably going to happen)

How do you know that Labour would not have ditched the ERM straight away and reaped the benefits of a lower exchange rate immediately, clever though trying to gloss over that major (yes him as well ) Tory !!!! up.

OneADay

Austerity- Last year and half have been nothing but austerity in the UK! And its not started yet .. officially.

People without jobs, savers who do not earn anything despite being careful not to fall into the trapping of Labour's fools gold.

Black Wednesday 1992 cost the treasury £3.4 billion - peanuts compared to Labour spendaholics of the past 13 years.

bigheadxx

OneADay wrote: »

Austerity- Last year and half have been nothing but austerity in the UK! And its not started yet .. officially.

People without jobs, savers who do not earn anything despite being careful not to fall into the trapping of Labour's fools gold.

Black Wednesday 1992 cost the treasury £3.4 billion - peanuts compared to Labour spendaholics of the past 13 years.

The treaury actually made a profit out of Black Wednesday, eventually.

I havent seen much austerity from this government. The state has got bigger, nothing has been done to tackle the deficit and we are using pretend money to pretend that the economy is growing, which it isnt.

globalds

blinko wrote: »

WHen is this double dip thing supposed to be happnening ?

Ive ben waiting ages

When we finally stop pushing extra money into the system ..