A reasoned voice on the Brexit vote and the reactions

[Suff]

What this article is basically saying is that companies are burying bad news in Brexit. Regardless of the cost to the overall economy.

They speak with forked tongue. Works for me...

[Workingman]

This kind of thing will go on for ages yet.

Brexiters blaming anybody and everyone for blaming Brexit. Remainers saying 'we told you so' and on it goes.

It is all guessmanship unitl we actually know how and when things will be done ... and that is down to government.

Meanwhile all the pointless point scoring will continue even though it is doing enormous damage, but hey, there are column inches to fill.

[Suff]

Cameron, Osborne, the BOE and the DTI did such a good job of scaring the crap out of the markets that when the vote finally came in they panicked. Every time they try to stabilise and sort out the mess, they get their feet kicked out from under them again when someone starts doing stuff which is not necessarily warranted, like the BOE bank liquidity move. Then the BOE analyst starts talking about "massive" intervention as if it's 2009 all over again and things wobble.

However the BOE now has to sit back and actually get the figures in before doing anything, May is doing nothing but planning and the EU bumping their gums has already been seen to be a toothless tiger. Markets are adjusting to the new situation. Eventually the markets are going to price in the downside and start seeing opportunity with a capital "O". Then the whole merry go round will spin again.

The BOE, on their own statements, need at least 3 months to recognise a trend and determine a proportionate response. If people stop panicking and trying to take their money out of building funds then things will go back to a new normal. OK so the markets have suffered a correction, the only thing which can sort that out is peace, quite and stability. Unfortunately everyone has to blather on about the "impact" of Brexit, making no sense and just creating hot air. But that hot air ruffles the markets.

As for the building funds, I know exactly why people are panicking. One of my Uncle's has his entire disposable long term savings in one. He made £26,000 last year in profits off it. As they say, risky assets are exactly that, risky. It's why they pay so much. Builders do go bust but normally only through severe depression or mis management. So long as the banks keep lending the people keep buying and people keep their nerve, then everyone can get their money out.

One interesting point about this is that the "analysts" or analists as I often think of them, are talking about how Brexit will depress the housing market. If the builders have to get funding from the banks and pay more than they are paying to the building funds, due to investors backing away from them, then house prices are going to go up because less houses are going to be built which will create pressure in the market.

[Suff]

Erm....

There I was talking about Opportunity and I had not even read the news....

Somewhere amongst all my posts wittering about the possible impact of Brexit, before the vote, I said that the #5 economy in the world could not possibly be ignored when it came on the market. That other countries around the world would see that economy as a HUGE opportunity to be grabbed before someone else does.

Do I not recall that Australia was one of the countries pushing hard for the UK to stay because it would be "better for them"? Apparently it's now "better for them" to have an open trade deal with us. Maybe because our economy is so much bigger than theirs and also because they already had trade with us from within the EU. Free Trade will net them much more than the restricted trade of our EU Days did.

Right now there is a huge kerfuffle about how it's going to be so "difficult" to create trade agreements because we're missing all those trade negotiators we need. It seems to me that "free trade" needs significantly less negotiators than "closed trade" the way the EU does it. After all, how many negotiators did it take to get that offer from Australia?

I'm willing to bet that the second the Brexit vote came in the CEO's of Australian countries were beating the PM's door down and clogging his phone lines demanding that he gets a trade deal set up "pronto"...

Australia won't be the only country like that. Given the position with China right now and the UK permanent seat on the UN Security Council, we might find some interesting overtures into the Chinese economy. Much to the detriment of the EU and their €60bn trade imbalance with the UK..