We watched what passes for “The Wire” these days move the news last night: Britain had voted to exit itself from the European Union, and we looked around wondering if anyone anyone knew or cared about that news and what we thought was sure to happen.
Prime Minister David Cameron is resigning, and we have to wonder if he is having second thoughts about calling for a referendum in the first place.
The result of all this, of course, manifested itself this Friday morning as world markets and our own digested the news, puckered, and headed for the basement.
Colleagues at the BBC, enviably calm even during the hottest shot and shell, fixed their cameras on the waxen faces of bankers and market traders and tried to keep the sweat off their lenses.
“Leave’s victory has delivered one of the biggest market shocks of all time,” Joe Rundle, head of trading at ETX Capital, told the BBC. “The pound has collapsed to its lowest level in over 30 years, suffering its biggest one-day fall in living memory.
“Panic may not be too strong a word – the pound could have further to go over the next couple of days as markets digest the news.
“It’s fair to say we’ve never seen anything like it and the chances are markets will remain highly volatile over the coming hours and days.”
At home, the Dow Jones dropped like a shotgunned Mallard – falling 430 points at the Friday opening.
We started stashing cash in old coffee cans and burying them in our garden.
Almost as distressing as the breaking financial news has been the regular old breaking news here at home, with youthful carjackers and plunderers plying their trade here in the safest cities in the East Bay and generally wreaking havoc.
We watched with wonder as folks blissfully walked past police lines in Lafayette after an aborted burglary spawned a wide search for at least one suspect and downtown Lafayette was sealed off as police searched for the culprit(s) with dogs and helicopters.
“Do you know what’s happening?” we were asked as folks found themselves cutoff from their breakfast bagel and coffee, handing out business cards like crazy and telling them to catch up on the site.
We’re still not sure what that latest spike in burglaries and aborted carjackings really was; an anomaly, a test of our new “safest cities” pronouncement, or a statement that local crooks really like what we have here and have come for their share. We’ll see about that, too, in time, but the flurry made local police go “hmmm” and wonder what summer has in store.
We’d be interested to hear what you folks think about the ripple effect of Brexit, and the recent flurry of recent criminal escapades here at home. What do you guys think? Or are you still just looking for the breakfast bagel and coffee?
I don’t see a lot of upside for the British citizens in Brexit– just a lot of anxiety and transactions costs as they migrate to a new frameworks for trade/treaties with the (remaining) EU. In five years, no one will be able to identify what is definitely better or worse in U.K. due to Brexit. But the “revolt against the status quo” will cause a bunch of short term damage. The most terrifying thing is that this spasm of naive populism could be contagious. See, e.g., Trump, Donald J.
The people are speaking. The UK is just the start.
Hello all….. Back in the UK actually for Glasto and walking the tents to see what people think about all this and it is evident people are aware we’re in the midst of great change in my former homeland. There is a little celebration going on and there doesn’t seem to be much sadness over the resignation of David Cameron but there IS a huge sense that we’re going to have to pull together as a nation if we are to make it in the years to come. Perhaps Adele will make us all feel a bit better. Big news in the UK and Europe right now.
Back in Blighty and at Worthy Farm, eh? You lucky guy. Say hello to Adele for us and SEND PICTURES! Have fun…
Agree with Chris Nicholson. I believe Leave carried because the immigration issue was such a large part of their campaign and people — especially in the North — reacted to that messaging. I also agree this referendum may be a precursor for other elections to come and while I do not see Mr. Trump being successful I do believe his incredible longevity (comparatively) can be attributed to similar beliefs here at home.
I congratulate Great Britain on this move! It will lead to a better stronger Britain. Many people saw through the doomsday threats.
I agree that Britain needs to British and appreciate its heritage and culture and not just be melted into something else. Traveling to Europe alot, I can tell you the sentiment like this in other countries there too. People want control their own future again and not have it dictated from somewhere else.
I wish them the best!
I was very surprised at the stock market rally yesterday. The story was that the odds for remaining went from 51% to 52% in the final polling. Also, the odds makers claimed a higher probability of “remain”. I am not a savvy investor, but I thought 52%? in a sampling? That’s pretty close considering the calamitous change that would follow, and something called sampling error, but the market was content. Then the CNBC reporter observed that a drenching rain was falling, in London, which was heavily disposed to remain in the EU. That meant to me that anything could happen, but the market took no notice. I was amazed. They are noticing now.
I rebalanced my portfolio yesterday. It was long overdue. Thanks for the rally.
As for the Brits, they suffered endless propaganda from both camps. What is actual? They are about to find out.
What does it mean for us? Lock up your jewelry. With the spike in gold prices, you can be sure the crooks will be looking for those jewelry boxes out in the open, like on the dresser, while the owners are at work or shopping.
CNBC clever heading today “Brexit Wound” discusses likely dissolution of the EU and possible disintegration of UK.
What’s wrong with Britain being Britain?.
It was wrong that Obama flew there to tell them they should stay in the EU. Some credit that with backfiring. Britain is sending billions to the EU for the membership charges and the EU is having to pay out billions to some of its socialist member countries that are not doing so well.
I think in the future, Britain will be very happy they did this now. I’m happy for them.
I think we should support them by buying more British products…. so put in your order for your new Bentley or Rolls today 🙂
I find the news so interesting: the European news is generally showing the British being very happy about the results. The US is indicating the British have remorse now. But I almost trust the European news more, as the US news is known to be very slanted.
The near even split in the vote will make this harder to swallow. Half the country will have to be dragged in whatever direction they now go. It’s not like pulling together to fight a common enemy or shared economic difficulties. Uncontrolled immigration is overwhelming them and their sense of common heritage. Economic and class disparity is huge. The Scots will want to leave the UK for sure now. Their vote was very clear on the EU question. Uncommon leadership is required, something that is in short supply in these demagogic times. I wish them well, but I am not optimistic. You can be sure that the benefits of withdrawal were overpromised just as were the forecasts of doom.
I haven’t been to Scotland in 40 years. I can’t buy a Rolls, but a visit may be in order.
We’re headed to Northern Ireland and Scotland next week. A couple of days ago, when the Pound seemed to be rebounding, I called and prepaid our hotels to lock-in the exchange rate. Saved about 9% of the rate quoted when booked. More money for Scotch and haggis!
I’m particularly curious to hear the feelings of those in Northern Ireland. They voted to Remain, and now face the weirdness of being surrounded by the EU without a clear way to trade with their almost literal neighbors.