Screw the markets (redux)

The bond markets are joining the rightwing press in their attempted coup. They're going to ignore the UK's massive economy and downgrade its credit rating if the Liberals go with Labour, even though this could be a more stable partnership than Con-Lib.

This sounds ominous. A Lib-Lab pact would "almost guarantee" a downgrade of the UK's top-notch credit rating because both parties oppose early spending cuts to reduce the government deficit, according to analysts at BNP Paribas. They advised investors to sell the pound against the dollar.

"A Labour/Liberal government is the least-liked option by markets and would almost guarantee a downgrade of the UK sovereign," the analysts said. This is because "both parties agree that early expenditure cuts could harm the economy."

Taken to its logical conclusion, presumably the financial services sector would prefer us not to have elections at all. I'd rather devalue and export our way out of recession than rely on these vultures for a single pound.