<Click on chart for larger image> The Wall Street Journal – ‘Brexit’ Vote Means More Fed Delay Market mayhem and the strengthening U.S. dollar following Britain’s decision to leave the European Union make it increasingly likely the Federal Reserve will delay plans to raise short-term interest rates. Officials just a few weeks ago were looking… Continue reading Hilsenrath Mentions The Possibility Of Rate Cuts
<Click on chart for larger image> <Click on chart for larger image> Bloomberg.com – The $100 Trillion Bond Market’s Got Bigger Concerns Than Brexit Low rates are also a natural consequence of too much government borrowing after the financial crisis. While it gave economies a much-needed boost, the debt burden robbed many countries of their… Continue reading Negative Rates
The Financial Times – Martin Wolf: Brexit will reconfigure the UK economy Britain has prospered inside the EU but it will not do as well outside The UK economy is going to be reconfigured. Those businesses that have set up in the UK to serve the EU market must reconsider their position. The City’s role… Continue reading What Does Brexit Mean For The UK Economy?
The Financial Times – Mohamed El-Erian: Brexit is a problem central banks will struggle to fix For quite a while now, investors have been comforted by the notion that central banks are willing and able to sustainably shield them from the detrimental effects of unusual economic and political developments. But central banks now carry an… Continue reading Brexit Puts Central Banks In A Tough Spot
Project Syndicate – George Soros: Brexit and the Future of Europe Now the catastrophic scenario that many feared has materialized, making the disintegration of the EU practically irreversible. Britain eventually may or may not be relatively better off than other countries by leaving the EU, but its economy and people stand to suffer significantly in… Continue reading George Soros Speaks On Brexit
Vox – This comment perfectly explains why Brexit has left the UK’s young feeling so devastated The howl of despair with which global financial markets greeted the United Kingdom’s decision to withdraw from the European Union has nothing on the disappointment and anger of the 48 percent of British voters, many of them young, who… Continue reading Why The Young Largely Voted To Stay In The EU
<Click on graphic for larger image> The Wall Street Journal – Raw Economic Data Is Just Noise That Needs to Be Silenced Clothing prices rose 0.8% last month, car sales slumped 6% and the unemployment rate dropped 0.3 percentage point to 4.7 percent. Are those numbers good or bad? If you’re looking at unadjusted figures,… Continue reading Seasonally Adjusted Data
They Really Did It! <Click on picture for larger image> <Click on cartoon for larger image> After Brexit, what’s next? Grexit Departugal Italeave Czechout Hollaland Slovakuate Oustria Fruckoff Finish Slovakout Frescape Luxembolt Latervia Byegium Slovlong Swedone Swedend seeyoulatervia Retireland byerland NOrWAY All that will be left is Remainian Germlonely or Germaining SpaIN LithSTAYnia DWELLmark <Click… Continue reading Cartoons
Comment Every day for the last two weeks we commented on the Brexit vote. We finished each comment noting how the market was pricing in a near certainty that the UK would remain in the EU: As we write this the markets are way out in front of the voting. They have largely priced out… Continue reading The Markets Mispriced Brexit In A Huge Way
<Click on chart for larger image> Comment What happened yesterday in the UK is truly unprecedented. Tories and Labor both were both in favor of the UK remaining in the EU. This would be akin to Republicans and Democrats agreeing on something. Despite this, Brits voted to leave the EU. Virtually every “expert” institution, former… Continue reading The End Of Globalization
Comment In the wake of yesterday’s vote, what is next? BBC News – EU referendum: Brexit sparks calls for other EU votes The UK’s vote to leave the EU has sparked demands from far-right parties for referendums in other member states. France’s National Front leader Marine Le Pen said the French must now also have… Continue reading What’s Next?
The Wall Street Journal – Jon Hilsenrath: Hilsenrath’s Take: ‘Brexit’ Vote Means More Fed Delay Cautious and risk-averse, Janet Yellen will surely be highly reluctant to raise interest rates Market mayhem and the strengthening U.S. dollar following Britain’s decision to leave the European Union make it increasingly likely the Federal Reserve will delay plans to… Continue reading Now The Market Is Pricing In Cuts