There is an old Chines’ proverb “May you live in interesting times” and here we are living in times full of future changing historic event. Brexit sure is one of them, Many people believe that every incidence is an isolated happening with little or no effect on surroundings like I see many here on social media being sarcastic about how Pakistanis are so much interested in this or for that matter any event in any other part of the world but the bitter reality of our times is that in this highly volatile and dynamic global environment, no event happen in vacuum, it is bound to have rippled effect for other countries or economies.
On June 23 , Britain voted to leave EU , according to the statistics youth sided with remain while majority of other sectors of the society voted for leave.
This huge decision of UK to step out of EU is a very significant event of today, the interesting thing I noticed is that British and America based news journals had analysis literally 180 degree apart.
This affected the world economy in a way that most of people like me were not anticipating, literally wiped out close to $3 trillion in global wealth in just two trading sessions. According to my finance professor, USA is back to Jan 2016, lost all gains of 5 months. June 24 was called as the worst day in global equity market since collapse in Sept 2008, pound has crashed to its lowest level since 1985. Now huge possibility on horizon that Scotland and Northern Ireland may exit UK and leaving behind “United Kingdom of Little England and Wales”
So was it the fear of unknown that pushed them or was it a mere effort to register their discontent and they were not actually wishing this idea to materialize, either way it will take a long time for UK to recover from this trauma, new deals and term will be negotiated with heavy investment, will have to enter markets on new terms which might be not as pleasant as current ones. In short to me it seems like sometimes people without realizing the repercussions and long term effects, do strange things for which their generations have to pay.