We covered a bit of the drama last year regarding Grexit – the Greek exit from the European Union. We had not covered any of the drama regarding Brexit – the British Exit – for two reasons: first, although Britain is a member of the European Union, it still maintains the British Pound as its currency, so a Brexit is a arguably less complicated and second, relatively few pundits thought Brexit was going to actually happen.
Well it has. The British public voted 52% to 48% to leave the European Union. There are hundreds of articles about this and we’ve spent several hours listening to global investment firms talking about the decision and its fall out. There is far too much political and economic fallout to cover and fit into a blog post. So let’s sum up some of the major topics as bullet points:
- The largest single daily market loss ever – with $2 trillion wiped out last Friday
- The resignation of Prime Minister David Cameron
- The open revolt against Labor leader Jeremy Corbyn
- The potential separation of Ireland and Scotland from the U.K.
- The shutdown of London as a global financial hub
- The parallels between the Brexit and the rise of Donald Trump
- The resurgence of populism and nationalism within the EU
- The shockwaves to global commerce and true economic potential
- And, perhaps tellingly, the ongoing efforts to reverse the referendum
Any one of these topics could fill up a several magazines and a few PhD thesis papers besides. The Brexit is a big deal and significant events are still unfolding. We are watching this closely.