Friday, June 03, 2016

BREXIT Contagion!
Yra Harris is worried about a Brexit - UK pulling out of the European Union, & the implications: "IT IS DOUBTFUL that the FED will raise at the JUNE meeting. Today, Rick Santelli and Jim Bianco covered the BREXIT discussion very well. The negative FALLOUT from a VOTE TO LEAVE will be far more detrimental for the EU than for the British. This is the referendum contagion this blog has been discussing for three years. The European elites are fully aware of the ramifications for the EU if Brexit wins. Credit markets will feel the full force as the ECB will battle speculators over the valuation of much of European the sovereign debt. The BRITS will control their printing press regardless while Italy, Spain and others will be called in to question. The FOMC will be reticent to raise rates ahead of the vote. Yes, there are always concern about some global event but certainly not all events are created equal. Today, the ECB was unchanged across the board except that we now know that the ECB will begin buying corporate bonds on June 8. The most interesting aspect of the Draghi press conference was the amount of times that Draghi raised concerns about headwinds from the emerging markets and the global deleveraging still plaguing the European economy. Draghi made it known he is very concerned that risks are 'tilted' to the DOWNSIDE as Brexit and other global political risks are raising the level of financial uncertainty."
LINK HERE to the commentary

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