Brexit crushes the big banks, other stocks

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Image: Screengrab from CNBC video

This is called “an excuse.” People wanted to sell, they saw a big fat excuse to sell in Brexit, and so they have. (Some were just sure that Brexit wouldn’t happen and were simply forced to sell.) Smart people are also prudently looking to buy. But one way or another life will go on and the world will adjust. The big banks just got socked and that is a good thing.

The world is on the edge of recession and has been for a while. We’ve barely started to pull up out of the post 2008 Crash mire even at this late date. If we do start to see a spread of deeper recession some will seek to blame Brexit. But they will be wrong. Brexit is exactly what the world needed. The system of cronyism which seemed to extend with each year just had a few tentacles chopped off. That is certainly worth some market instability. Keep those hatchets at the ready.

(From CNBC)

“The biggest thing is markets are operating and there isn’t a liquidity crisis. This isn’t a Lehman moment,” said Chris Gaffney, president, EverBank World Markets.

“I think investors mispriced the risk and quickly repriced it,” he said. “That’s what we’re seeing now, the repricing of risk with heightened uncertainty.”

U.S. stocks surged into the close Thursday amid increasing expectations that Britain would vote to stay in the European Union. As of the close Thursday, the major U.S. stock indexes were tracking for weekly gains of nearly 2 percent or more.

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