Monday, 20 June 2016

In, Out, Economy Shaken All About

Almost every economist from the IMF to the Bank of England have said that if the Brexit camp win the day and we head of of the door marked Exit on June 23rd, the economy will tank.
The Brexiters have dismissed it as scaremongering but last week when the Brexit campaign seemed to have a surprising slender lead in the polls, £30bn was wiped off the value of blue-chip companies, the FTSE 100 index closed at its lowest level since February and the pound fell 1.2% to its lowest for two months.
Today, on news that the Remain camp had regained the upper hand the pound posted its biggest one-day rise for almost eight years and the FTSE 100 share index jumped 3%.
Not sure what all that means but it shows that just the thought that we may go sent the stock market into a tailspin so i hate to imagine what would happen if we did follow it through and vote Out.

2 comments:

Keep Life Simple said...

Investors don't like the unknown. Given a choice between status quo and change, they would stick with almost any conditions where they aren't losing money.

The joke is that they think they know what the future holds. In this case they would rather stick with the EU and its weak economy (for 8 years) than try something different.

Nog said...

Britain seems to have so many EU opt-outs that it almost seems like if y'all stayed in the common market and paid the EU and followed EU regulations for the privilege, little would change except that y'all couldn't vote on those regulations directly...