Brexit. Why do Brits want Out of the EU?

@Walter Hinteler,

As stated previously, in the panic after the vote the Pound dropped 15¢ in the two days after the vote, only 1.5¢ in the week since. It's not actually recovering yet, but it's descent has slowed from a plunge to a very slow crawl as things normalize. Expect a slow climb to commence in the next few weeks.

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@Blickers,

Blickers wrote:

as things normalize.

this bit might not be happening soon

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@cicerone imposter,

Are you sure it is Euro if it is several decades ago?
The Euro only started 14 years ago
1999 it started as electronic money

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@saab,

My timing may be off, but I have 585 Euros. Since I have no plans to visit Europe any time soon, but will be visiting Cuba next month, I'm converting it there for CUCs. I also have 1710 Canadian dollars that I'm taking to convert to CUCs.
Used to visit Europe often, especially London, but haven't for a very long time.

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Walter, the top of your dollar to pound chart is only 3¢ higher than the bottom. That kind of thing makes a slight dip look like a steep plunge.

And it dropped 15¢ in two days and has largely stabilized to where it's only dropped 1.5¢ in the past week. With it's usual hyperbole, the press is playing up various historical landmarks to give the reader the impression that everything is far worse than it is.

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@Blickers,

That's because it makes a big difference to the Brits who use the pound. In the world of competition, that's a biggie.

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@Blickers,

Whatever.
I used British sources, here from the Telegraph, a conservative, pro-Brexit paper:

Quote:

Sterling plunges to new 31-year low
Post-Brexit jitters continued to grip currency markets. The pound, which had already hit a new 31-year low in early trade, tumbled further in afternoon trade after Aviva Investors and M&G announced that they had suspended their property trusts. Sterling fell to an intraday low of $1.30 against the dollar, down by more than 2% - it last hit this level in 1985.

published 5 JULY 2016 • 18:21

Opposite to your opinion, I do think that a 1% or 2% down in currency exchange is quite a bit, especially for the trade.

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@Walter Hinteler,

I think a 1% or 2% drop is worthy of note, but compared to the nightmare scenarios being drawn by the media, my only reaction is: Is this all?

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@Blickers,

Well, who knows what will happen after the Brexit? (If and when it happens.)

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@Walter Hinteler,

By the way, the conservative leadership vote results:
First round:
Theresa May received 165 votes - more than 50% of those cast. Andrea Leadsom came second with 66, Michael Gove third with 48 and Stephen Crabb fourth with 34. Liam Fox got 16 (eliminated after the first round).

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@Walter Hinteler,

Quote Walter:

Quote:

Well, who knows what will happen after the Brexit? (If and when it happens.)

Fair enough, we don't know. I just found the whole Doomsday scenario being painted by the media as being over the top by a huge margin. I think the EU is fine progressive organization which stands for human rights and the good things, but then so is the UK. There are no bad guys here, as far as I am concerned. If the UK choses to exercise its option to leave, it's probably just as much an indication of how Britons historically view their relationship to Europe as much as anything else.

At first I thought the Brexit was preposterous, Lordy's posts made me think there might good reasons to leave, so I went neutral since there are also good reasons to stay. But the pile of BS the media has put forth for the last couple of weeks is too much to take.

1 Reply

@Blickers,

Blickers wrote:

But the pile of BS the media has put forth for the last couple of weeks is too much to take.

Actually, they just reported what the campaigns said, most with a focus on their favourite.
But I don't think that the media (or the two campaigns) meant with the described scenaria the situation after the referendum but after the Brexit.
And as said: that won't happen before 2018/9

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http://business.financialpost.com/news/economy/mark-carney-warns-financial-shock-from-brexit-crystallizing-as-bank-of-england-eases-bank-rules-in-major-change

Quote:

Mark Carney pledged to shore up financial stability as he warned that the risks attached to Britain’s shock decision to leave the European Union have started to crystallize.

“The number of vulnerable households could increase due to a tougher economic outlook,” the Bank of England governor said at a press briefing in London on Tuesday, after the central bank published its biannual Financial Stability Report. Fresh measures include a reduction in the capital requirements for banks, that he called a “major change.”

Carney’s third appearance in 12 days since the U.K. vote highlights his role as a beacon of stability as political infighting heightens the uncertainty of how the country will now proceed and what the economic fallout will be. The governor has already pledged to make sure banks have access to all the liquidity they need, and signalled rate cuts could be in the offing this summer.

if Mark Carney is saying this, I'd pay attention

given how he held Canada up through the last recession, the Brits should be glad they poached him

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@ehBeth,

It seems, only the Bank of England has a plan, but just about specific dangers concerning the banks, cross-border investment and a plunging pound. (Anything more wouldn't be the Bank's job.)

Britain remains in the EU for another two years. At least two years.
The political paralysis that is to be seen since the results of referendum are out, have as result the "anxiety" which is to be seen now.
Uncertainty about the new PM, no opposition as a 'government in waiting' (though the Liberal Democrats got thousands of new members in last few weeks), and there is not a plan – no plan for how or when Britain leaves, no plan for future relations with Europe ... ...

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@ehBeth,

Quote:

if Mark Carney is saying this, I'd pay attention

He comes across as very level headed, calm and sensible. We are lucky to have him.

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@Tes yeux noirs,

Mark Carney (the BoE) warned already months ago about the dangers of Brexit - widely accused by the Brexit campaign in those days ("Doomsday scenario " as Blickers called that.)

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@Walter Hinteler,

That's fine, there is no doubt the financial sector wanted things as they were. But then, the financial sector almost always wants things as they were, any change becomes reason for skittishness. So far, the post-vote reporting that a worldwide recession was now underway because of the vote has turned out to be nonsense. We'll see how much of the forecast for the next two years holds up. So far, the Doomsday predictors haven't got much results to show.

1 Reply

@Blickers,

Quote:

So far, the Doomsday predictors haven't got much results to show.

M&G and Aviva suspend property funds following Brexit vote

http://www.bbc.co.uk/news/business-36715806

Standard Life suspends trading in UK property fund

http://www.bbc.co.uk/news/business-36708844

Brexit: Singapore bank UOB suspends London property loans

http://www.bbc.co.uk/news/business-36670075

Pound slides to fresh 31-year low against the dollar

http://www.bbc.co.uk/news/business-36711595

Business pessimism 'doubles after Brexit vote'

http://www.bbc.co.uk/news/uk-politics-uk-leaves-the-eu-36708774

1 Reply

@Tes yeux noirs,

Quote:

Pound slides to fresh 31-year low against the dollar

The Pound went down 15¢ the first couple of days but only 1.5¢ in the past week. It matters not that some historical landmark was passed in last week, the Pound slid very little. But the press is playing it up like it is plunging, which it has not done once the shock of the Brexit vote wore off in a couple of days.

As far as business pessimism, business like the financial world rarely likes changes. That doesn't mean business is going to tank.

1 Reply

@Blickers,

I also agree with "business is not going to tank."

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Brexit. Why do Brits want Out of the EU?

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