Predicting the 2010 General Election Result

A new invention has allowed us to access newsfeed from the near future. One of our early scoops is that the next General Election in 2010 will be the first to allow the electorate to vote on-line from their homes (those without computers will still be allowed to vote by post). Another is the surprising (to some) result, and we have pleasure in copying you in on some of the follow-up.

We must warn you that the technology is still in its infancy, and so there may be glitches in the transcription. For example, the article below appears to have been affected by some kind of crossed line with BBC News from 2009. We'll keep you updated from time to time on the progress of our researches and technical developments.

Brown Poll trick 'confuses' voters

Gordon Brown: 'It was just a trick' from Gordon Brown - How to Win the Election', courtesy of Channel 4.

Many voters and critics have been left confused by Prime Minister Gordon Brown's explanation of how he appeared to predict Thursday's General Election results.

Some 4.6m viewers saw him claim to have asked 24 people to guess the successful candidates for the 646 commons seats and use an average of the total for each to predict the result.
But some mathematicians have dismissed his explanation as "complete nonsense".
And on blogging site Twitter one fan said he was "still confused", while another called it a "massive letdown".

IT trickery

On Brown's own Twitter account, he said: "Well there you go. I trust all is clear now."
He also added that his blog, which has been set up for people to comment on his tricks, has received 5 million hits.
However, it is currently not working.
Thursday's show on Channel 4 attracted 2.7 million people - beating the actual Election 2010 programme on BBC One, which 2.4 million tuned in for.
Brown successfully produced the correct numbers during The Live Event programme, at the same time the actual results were announced on the BBC's coverage.
He then promised viewers they would discover the secret of the trick on Friday's Channel Four News.
During How To Win The Election - which attracted a peak of 4.6 million viewers - he revealed that he had worked out the election numbers by asking a group of 24 people to guess them.
Once he had their answers Brown said he added the numbers up for each candidate and divided them by 24.
However, Alex Newton, a professor of Pure Mathematics at the University of Oxford, has dismissed Brown's explanation.
"Mathematically it is complete rubbish. It is a bluff on his part," he said.
And Roger Penwiper, professor of psephology at the University of Cambridge added: "There is a difference between guessing between the weight of an ox and guessing election candidates, which is un-guessable.
"That is just a clear wind-up and complete nonsense. There is absolutely no way he did that."
Other theories, that have been suggested in the newspapers, claim Brown used IT hacking trickery or a wall of postal votes to help him complete the stunt.
Michael Pundit of The Times newspaper rated the show five out of five, saying Brown has turned from "most irritating man on television to the most intriguing".
However, he added: "It was, of course, still one hell of a trick — far too good for him to give away."
Twitter critics of the explanation show include dCameron1966, who said: "I'm still confused about what way he did it to be honest."
T-Benn called the 59-year-old a "massive letdown" and AnthonyCLB said: "Is it just me or was Gordon Brown's explanation last night very disappointing?"
But some voters enjoyed Brown's stunt.
Peterm&elson posted on his Twitter page that the show had been "very interesting & entertaining".
Kjongil added: "Gordon Brown is pretty cool... I can see why people are so skeptical [sic] about him, but I think he's on to something here."

Fashion and the stockmarket

There has been serious research on the connection between what people wear and the state of the economy. I forget who, but a successful investment manager used to look at all sorts of apparently unconnected phenomena, including fashion, to get a clue as to what was really happening and about to happen.




PS: My wife says 80s-style shoulder pads are coming back in the Autumn catalogues. A bullish sign?

Dow now, and then - "Brief Encounter"

Discussing the Dow, I have previously suggested that instead of looking back to 1929, we might use the period 1966 - 1982 as a comparator. I've adjusted January 1966 and December 1999 to = 100 and oddly enough, the beginning of September 2009 sees the Dow past and present at a fairly similar point.

Is it too fanciful to say that we're now in the equivalent of about 1976?

Signs of a tipping point in the market again?

Jesse alerts us to this piece about current insider selling, a possible sign that the stockmarket is going to tank.

Stinking fish and red herrings

A fish rots from the head down, is the saying, and a truly rotten government we have. Currently they are busy monstering a venal group of auto company directors who did exactly what the Labour (!) government wanted them to do, which was to keep hope alive for MG Rover for just long enough to get through the next General Election. Equally obedient to his master's voice, the mannered and self-regarding Peston now emotes at them ("I feel slightly nauseous").

Those of us who are old enough will remember the history: how venture capitalist Jon Moulton came with a plan to reduce the money-haemorrhaging plant to a smaller, actually-profit-making outfit specialising in sporty cars. The rest of the enormous site would be cleared and developed as a residential and shopping area. Redundant workers would be suitably paid-off and their pensions preserved - and many of them might then have had a chance of employment with other car makers elsewhere in the country.

Oh, no, this would never do. The land was polluted and quite unsuitable for residential development. Rover still had a future. Moulton was a wicked chancer. His twopenny-halfpenny firm had no business meddling with a great bellwether of the British economy.

Now, the site has been cleared for residential and retail development. There is no car making at all. The workers didn't get the compensation they would have had, nor the pensions, nor the alternative employment. A few men have - legally - made about £9 million each, hardly worth mentioning in the same breath as the outrageous booty brought home by bankers and City gamblers.

And the Fourth Estate plays along with the distraction of the public's attention.

Robert Peston is the son of Maurice Peston, Baron Peston of Mile End, a Labour life peerage created for Peston senior on 24 March 1987.

Another collapsist

Last month, Marc Faber used the word "collapse"; now, Max Keiser says the same: the dollar will halve, gold will leap 50 - 100%, import prices will soar. In this interview, Keiser is a bit less gonzo and correspondingly more credible.

The question is, how bad is it for other countries (e.g. the UK) and what will trading partners do to stop their export markets being hit? If all major countries try to devalue their currency, then maybe only certain commodities will be worth holding on to while the winds blow.

And Keiser says the wealthy have been shifting their capital out of America since 9/11. He's been choosing defensive stocks, ones that will survive high unemployment, consumer boycott and anti-American sentiment. One big and possibly vulnerable name he mentions is Coca-Cola (remember Qibla Cola?) - a staple of Warren Buffett's portfolio.

Gold

... is over $1,000 again.