UK exit polling says the British are headed for a hung parliament. The Tories will have a heavy plurality of seats, but not enough for an outright majority. This is bad news economically; the fiscal situation in Britain requires strong leadership; a weak minority government will not be able to carry out the spending cuts needed to bring the public debt situation under control. I expect that the stock market will register this development tomorrow, and with the continued turmoil over Greece gutting the Dow, it won’t be pretty.
UPDATE: Leading UK econoblogger Robert Peston on why the economic crisis (a return to recession?) means the winner of today’s election may well end up regretting it.
UPDATE.2: From the Grauniad, more on the UK’s very dire fiscal situation, and what a hung parliament portends.