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Leader: Parties must get it together

If the first 24 hours of a hung parliament were anything to go by, with the endless prevaricating and lack of decision-making, we could be in for a bumpy ride.

Jittery financial markets feed on this type of indecision so hopefully by the time you read this the Conservatives and Liberal Democrats will have done some sort of deal to ensure the political direction of the country is clear.

On Friday Tory leader David Cameron made a broad offer to the Liberal Democrats – as did Labour leader Gordon Brown if the Tory talks fall through – to form a strong and stable government that lasts. Let’s hope they can come up with something that works.

With no party securing a majority, at the time of writing we are stuck in an uncomfortable political limbo – a situation we have not been in since 1974. Things didn’t go to plan back then so let’s hope 36 years later we can make a better go of it.

With all the parties pretty light on ideas about how to sort out the housing market it will be interesting to see what comes out of a potential Tory-Lib Dem hybrid.

You only had to witness the three leaders’ performances in the final television debate to see some classic fudging when it came to the subject of providing more affordable housing.

The general election has certainly given birth to a new era of politics. Let’s hope some sort of collaboration between parties provides an injection of fresh ideas and action to get the economy back on track.

The riots in Greece are a lesson to us all on how we could suffer if the politicians collectively contrive to fumble the ball at this pivotal moment.


Details emerge about Mortgage Times’ debt

The extent of The Mortgage Times Group’s debts were revealed last week in documents filed at Com-panies House. The network, which went into administration on February 16, owed unsecured creditors more than £3.2m. Papers signed by the network’s director Paul Carmody on April 1 show it had assets of £378,500 that were made available to […]

Clients don’t care about the labels we hang on mortgages

In response to your recent story that those choosing to operate in the sub-prime market will continue to reject traditional terminology (Mortgage Strategy Online), surely the people looking for these sorts of mortgages don’t care what they are called – they are just happy there is a lender able to help them. The individuals who […]

Lloyds’ RMBS deal does not prove the market is returning

I have just read that Lloyds Banking Group has launched a securitisation deal backed by mortgages from Cheltenham & Gloucester and Lloyds TSB worth £3.4bn (Mortgage Strategy Online). It depends on the terms of the issue as to whether this indicates an opening of the market or not. If the issue is backed by guarantees […]

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading


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