Europe Has a Bigger Problem Than Brexit

Jon Economy, Market Commentary, Politics

This is a syndicated repost courtesy of Economy and Markets. To view original, click here. Reposted with permission.
The Dow dropped nearly 1,000 points (5%) and the London FTSE dropped 10% after the Brexit vote surprised the markets on June 23. After two days though, markets are marching back up again.
That’s just like markets on ‘crack!’ They react to political events, but totally miss the fundamentals.
Yes, Brexit is important. Years from now it will be recognized as the beginning of the end for the great Eurozone experiment.
It isn’t just about the renegotiations on trade agreements with Britain and initial slowing of GDP. It’s also about the threat that more countries will choose to exit the economic bloc. The euro and Eurozone have 40%-plus unfavorable ratings in polls in France, the Netherlands and Italy. That many areas within countries will break free of their overlord. And then this rush for nationalism will spread across the globe like wildfire.

This post was published at Wall Street Examiner by Harry Dent ‘ July 1, 2016.