The vigor and health of financial markets is based in large part on the complacency of the elites who presuppose that the wool is thoroughly and snugly pulled over our eyes (us being the commoners).
And with Brexit’s likely win, the wool is lifting and with it, the Complacency of the Elites.
Britain entered uncharted waters Friday after the country voted to leave the European Union, according to a projection by all main U.K. broadcasters. The decision shatters the stability of the project in continental unity forged after World War II in hopes of making future conflicts impossible.
The decision raises the likelihood of years of negotiations over trade, business and political links with what will become a 27-nation bloc. In essence the vote marks the start — rather than the end — of a process that could take decades to unwind.
The “leave” side was ahead by 51.7 percent to 48.3 percent with more than three-quarters of votes tally, making a “remain” win a statistical near-impossibility.
The pound suffered one of its biggest one-day falls in history, plummeting more than 10 percent in six hours, from about $1.50 to below $1.35, on concern that severing ties with the single market will hurt the U.K. economy and undermine London’s position as a global financial center.