The Liberal Toricracts

So, a new coalition government is in place. Probably the best outcome taking into account the election results. A Labour government was absolutely un-viable. A minority Tory government would have been radical and unstable. Only thing that's completely daft is leaving Osborne as Chancellor. A coalition was a great excuse to give the job to someone who could actually do the job.

The markets appear to agree that this is the best of the three evils. The concerns over a hung parliament almost a thing of the past. Not wishing to blow my own horn here [i.e. wanting to blow my own horn as loudly as I can], I can say: "I am not the kind of guy to say I told you so". FTSE up 300 points or 6%, the £ up 2 cents against the $ and even BP up 1.1%. The markets, as ever, are hysterical. Always swinging between doom and gloom and euphoria. Had I any money to invest, I would have made a killing.

Now that we have some answers as to what will happen in the political short term, the interesting question is what is the long term political impact. Which party will win long term? My bet is on the Labour party. Here's why. In the worse case scenario that the new government screws things up, Labour is the only alternative. If it doesn't, who will get the credit? Will it be the Tories? The Lib Dems? The Liberal Toricrats? Voters will find it very difficult to tell and will split the votes between them, allowing everyone else to get behind Labour. And on this one I am putting another cool £1.

PS 405km down. 595km to go.