07/05/10 - Sterling down heavily

3% fall versus euro - Is this due to the election result or part of the wider debt crisis

Hung parliament… a bit of confusion as to what will happen next so it’s likely that this has a large part to play in it.
That and the fact the UK economy is fubared.

Horrible memories of 1974 and the time of the Lib-Lab pact. A truly awful period in British politics when the public voted for the soft option - i.e. head in the sand, postpone the tough decisions and hope the financial problems will melt away.

It took a long time for them to wake up to reality last time, and I think the markets fear for more of the same. A legitimate fear based on recent history.