Thursday, May 6, 2010
Today is election day in Britain. The campaign has been hard-fought, and while it appears that the Conservative Party's David Cameron will win, it is not clear that any party will have a clear majority in Parliament.
The stakes are high - Britain faces a huge fiscal crisis, and the choices are going to be unpopular. Here's the key paragraph from the piece in this morning's New York Times:
One man who knows more than most about the scale of the problem is Mervyn King, governor of the Bank of England, Britain’s central bank. David Hale, a Chicago-based economist, said last week that Mr. King had told him that “whoever wins will be out of power for a whole generation because of how tough the fiscal austerity will have to be.” Mr. Hale, speaking on Australian television, met in off-the-record sessions with Lord King in London in March, according to a bank spokesmen, who did not deny the accuracy of the American’s account.
Our housing bubble was similar to the U.K. experience, and the fiscal problems we face today are also similar. Here's hoping we can move faster than the British, and address some of the issues sooner.
As Britain Goes to Polls, Economic Clouds Hover - NYTimes.com