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Topic - Miliband and the Economy

FesteringSore - on 26 Sep 2013
I'm no economist or financial expert but, thinking about Milibands "promise" to freeze energy prices I can see any one or a combination of a number of scenarios. The freezing of prices is going to result in the industries having less money for future investments. This will ultimately result in lower returns for the companies and ultimately for the shareholders. Shareholders will not be prepared to risk investing their money in the energy companies and the share values of these companies will plummet. Consequently anyone who has any sort of investment portfolios for their savings will loose out as their savings are eroded by falling share values.

The time to announce a price freeze is the day or the day before you intend to impose it. As it is now the energy companies have eighteen months to increase their prices to minimize the impact of the "freeze". When the freeze is lifted, watch the prices rocket.

This may be a simplistic layman's view but I really think there is only one reason why Miliband has done this and that is to persuade those non saving and non shareholding voters to vote for him.
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