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Thursday, June 30, 2016

Was Brexit fear a giant hoax or is this the calm before the next storm? - AEP

http://www.telegraph.co.uk/business/2016/06/29/was-brexit-fear-a-giant-hoax-or-is-this-the-calm-before-the-next/

it should be dawning on European politicians by now that the economic fates of the UK and the eurozone are entwined, that if we go over a cliff, so do they and just as hard, and therefore that their bargaining position is not as strong as they think. They cannot dictate terms... the fall in sterling is a blessing for the British economy, and a headache for the eurozone. The exchange rate is acting as a shock-absorber, just as it did in 1931, 1992, and 2008, all bigger falls, and all benign.''

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