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This from moneyweb.co.za:
JOHANNESBURG – We’re in uncharted territory. Friday’s jaw-dropping news – that the British public had a day earlier voted to leave the European Union (EU) by a 1.9% margin – sent markets into an immediate tailspin, as analysts from across the globe offered educated guesses as to what the longer-term implications of this monumental decision will be for the world economy.
The truth, however, is that nobody knows.
“The problem is, we don’t know what it means, we don’t really know. We’re all stabbing at things…,” deputy chairman at Sasfin Securities, David Shapiro, was honest enough to admit.
Dozens of media reports quote experts warning that Britain will almost certainly slip into recession off the back of its decision, particularly if it loses, among others, the easy access to European markets that it has enjoyed for the past 43 years.
London losing its status as a global financial centre, and the decline in income, jobs and property prices that will follow; sustained pound weakness; and a response by the Bank of England to slash interest rates to zero while introducing quantitative easing, are some of the other suggested outcomes of this vote.
Full story here:
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