Happy Independence Day - Britain!

A lot has been written on Brexit and whether it is good or bad for Britain.  I don't know enough to know for sure and from what I have read I believe no one really does.  Certainly there will be a lot of short term pain while everything is worked out, but I do see the initial drop in the FTSE has been overcome and then some, with a nice gain over the pre-Brexit level.  Go figure.

This market rebound could be largely due to the pound taking a dive, which will help exports and British companies that do so, but Brits are going to be paying a good bit more for imports, and last I checked they import quite a bit of what they consume, so this cuts both ways.  If I were a cynic, I might suspect that Central Bank interventions have had something to do with the FTSE and other markets having a rebound.   Either way, the market does not reflect Brexit to be another Lehman moment.  (For that we should be watching some of the European financial institutions that are setting new record lows)

Indeed, there is firm evidence that the Brexit move has already resulted in some tangible benefits for Brits.  Well, for at least one Brit anyway, David Cameron.  You see, he seems to be enjoying his new found freedom, lounging on the sofa with the occasional jaunt to the frig.  And the problems of the world are no longer his.  As he observed:

"I flicked on Sky News and apparently there was some unpleasantness yesterday which is absolutely none of my business anymore."

Here is one fellow making the best of it.  He is, after all, in an enviable position.  If all goes to hell in a hand basket he can say "I told you so" and if it all turns out for the best, well, he benefits with the rest of Britain.  Win/win and the abdication of any responsibility has to be refreshing for him.

http://www.thedailymash.co.uk/politics/politics-headlines/cameron-spends-relaxing-day-at-home-laughing-20160701110050

Let's just hope it works out this well for the rest of Britain.

While no one knows how it will work out, there is something to be said for more independence.  The countries of Europe are simply too different in their origins, politics and approaches to life to be combined to the extent they have been.  The turmoil over the past few years in Greece epitomizes how different the Greeks are from Germans in financial matters.  Are the French of a same mind as the Brits or Germans on politics, social issues and the like?  I think not.

For a nice piece detailing why a painful vote for independence made sense to one well-informed Brit, I refer you to this work by Ambrose Evans-Pritchard.  He seems to know of what he speaks:

http://davidstockmanscontracorner.com/brexit-fears-giant-hoax-or-calm-before-the-next-storm/

So as we in the States approach our annual celebration of independence from Britain, we watch the turmoil across the pond and wonder if some day Britain will likewise celebrate its own Independence Day.  And who doesn't like having another national holiday to take off from work!  See Britain, silver linings everywhere you look.