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So, four months have passed since the British Prime Minister, David Cameron announced the in-or-out referendum from the EU. Over that period of time, the Pound Sterling has been all over the place, first dropping to lows not seen since the height of the sub -prime crisis in 2008/09, recovered all of its losses and then some, dropped back to the $1.4 level on fears that the leave camp was gaining on the remain side, only to bounce yesterday back to $1.46. The uncertainty is not confined to the Pound, but also pushed the FTSE 100 has also had a roller-coaster ride.
On the previous blog posts in the Brexit, Schmexit series Brexit, Schmexit! Part 1: The Pound, Brexit, Schmexit! Part 2: The Banks, and most recently Brexit, Schmexit! Part 3: The Economy I took a deep look at the effects that a potential Brexit could have on the UK currency, its banks and economy. However, what to many seems to be UK-centric affair, is in yours truly’s humble opinion, going to affect Europe more that it will affect Britain in the longer run. This seems like a pretty bold statement, so let’s analyze it in detail.
For starters, Angela Merkel, François Hollande, Mateo Renzi, Mario Draghi, Christine Lagarde, Wolfgang Schäuble, have all endorsed the remain camp… wonder why? Continue reading