The pound and shares have slumped as fears grow that the election results have not produced an outcome that will sustain a government that can take decisive measure to deal with the budget deficit. The UK could face a worsening crisis.
Many of the remaining seats are Conservative ones, but Dave will probably fall short of an overall majority. The Clegg bubble has burst, yet Nick Clegg could still be kingmaker. One thing that he has to bear in mind is that he could lose even more seats in an early election.
The contest in Warwick and Leamington, which we have been following and is yet to declare, assumes an even greater importance.
I think that Dave will eventually be able to form a minority government, but it will be constrained in what it can done. It may make for interesting politics, but I am not sure it is what we need in an economic crisis.