Although the Brexit vote has spawned countless dire predictions about the fate of the UK once it exits the European Union, common sense suggests the reality won’t be nearly so apocalyptic.
Yes, that’s despite the 3% drop in the U. S. stock markets Friday and much steeper declines in stock markets elsewhere, particularly in Japan (8%) and Germany (6.8%). The British pound sterling fell more than 10% against the U. S. dollar.
The market turmoil continued Monday, with U. S. stocks declining about 2%. Meanwhile, both the Standard & Poor’s and Fitch credit agencies stripped the UK of its perfect AAA rating.
The forces that favored the UK remaining in the EU have used this as an ‘I told you so’ moment. All along the opponents of Brexit have warned that leaving the embrace of the EU would cripple the UK economy and trigger a global recession.
This post was published at Wall Street Examiner by David Zeiler ‘ June 30, 2016.
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