It’s not. But it’s not going to happen despite what a number of experts say. Oh, wait…
It amuses me slightly that a number of vocal Leavists on Facebook et al are saying along the lines of ‘they said the economy would crash but look the market started to recover by the end of Friday’.
True enough but an economy takes over than 12 or so hours to tank and the FTSE isn’t the economy (although they are linked to an extent but we saw growth in the FTSE even when the economy was in recession). They might be right, we might get through this relatively unscathed but let’s assess in 6-12 months before crowing about how it was all scaremongering.
As a point of interest due to the drop in the pound the UK lost more money in a few hours than it paid into the EU in the last 15 years.
More worryingly though than sterling dropping or the FTSE is the downgrade in credit rating. The UK was one of the few countries in the world to come through the credit crunch with its AAA rating intact.
This allowed for cheap government borrowing and significantly aided the recovery. Again, in the space of a few short hours that’s gone too.
Yes, it’s far too early to say the economy is going to decline rapidly but various things are stacking up against it and only very careful management by Threadneedle St and the government will get us through. Trouble is the government is severely weakened and it’s going to be up to CMD in his last few weeks in charge to get this one right so he can leave and be remembered as the man who **** a dead pig and destroyed the UK but just about saved the economy.