Yesterday, we gave our views on the flaky foundations of the Budget, but what did the other economics and business blogs have to say?
Martin Wolf at the FT thinks the Chancellor is flying on a wing and a prayer:
"...is the government at last
being realistic about the scale of this disaster? Can Labour hope to
get away with it, economically or politically? Does it deserve to do
so? These are the questions for markets and analysts now, and for
voters at some point in the next 12 months. My answers are, briefly:
No, No and No....I have no idea whether the government can both get away with this
optimism and postpone the moment of truth... Markets have been forgiving...[but] should investors decide that a
return to fiscal stability has become a remote prospect, they may turn
against the UK suddenly and brutally."
Dan Roberts at the Guardian picks up on our concern over whether financial markets will be willing and able to swallow all the government's new debt:
"The consequences of refusal – a "gilt strike" to ressurect the 1970s
parlance – do not bear thinking about. We had a taste today when City
alarm at the chancellor's largesse
caused a mini run on gilts and sterling. Dealers were said to be
terrified at the prospect of a possible downgrade in government debt by
ratings agencies."
Richard Tyler at the Telegraph goes straight to real question. His test for the Budget: Do I feel better?:
"No. More importantly, do you?"
A resounding 'No' would be the response from most manufacturers.