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Brexit OUT of EU: What happens now?

Discussion in 'General Chat' started by noco, Jun 24, 2016.

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  1. noco

    noco

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    Brittan has voted to exit the EU.

    How will it affect Australia?

    Will it be good or bad?
     
  2. dutchie

    dutchie

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    Life goes on.
     
  3. SirRumpole

    SirRumpole

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    I doubt if it will have much effect on us at all.

    It's going to take 2 years for them to leave, by which time our companies will have adjusted to the new regime.
     
  4. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    That's what you think?:eek:

    There will be shoes to drop yet, you don't crash the global markets and not get a bruises on ya....
     
  5. Knobby22

    Knobby22 Mmmmmm 2nd breakfast

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    I think overall it's a good thing but there are dangers.

    One danger is that a succession of countries will start leaving increasing the disruption. Anther is that free trade is compromised.

    The disruption from England leaving won't be that much as they were only half in it anyway and never took on the currency.
     
  6. trainspotter

    trainspotter

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    This is from a good mate of mine who lives in England ...

     
  7. noco

    noco

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    What I don't understand is why has it affected the Aussie stock market today.

    I believed it would open up new markets for us.
     
  8. dutchie

    dutchie

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    Cameron steps down.
     
  9. moXJO

    moXJO menace to society

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    He didn't have much choice.
    I think the whole thing will widen the divide between left and right. It was already fairly vicious throughout the campaign.

    As for the markets, lest we forget:
    Bird flu
    Boomers all retiring at once
    GFC
    Ebola
    Swine flu.
    Greece
    Spain
    Russia
    Etc

    It's all happened before and each event is always "the end as we know it"
    Great time to trade volatility.
     
  10. noco

    noco

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    A cool $50 billion wiped off the Aussie stock market today.

    The pundits say we will recover.
     
  11. Ald123

    Ald123

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    Before

    Tusk said. "As a historian I fear that Brexit could be the beginning of the destruction of not only the EU but also of western political civilization in its entirety."

    After

    Tusk said "There is no way of predicting all the political consequences of this event – especially for the UK. It is a historic moment, but not a moment for hysterical reactions.”

    Could someone please call his village and ask them to demand they get their hysterical idiot back.
     
  12. Gringotts Bank

    Gringotts Bank

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    Before the internet and cheap air travel came about, poor populations didn't know how bad they had it. If you lived on a rubbish tip in Bangladesh, that's all you knew - that was life. You didn't know that in Australia you could be financially destitute and yet receive endless handouts - high quality free health care for life, subsidised housing and free education. You didn't even have to work.

    Internet changed all that. Look how good life is in the West! Get here quick! What follows is a massive and unsustainable demand on any free services - healthcare, govt housing, benefits and education. The quality of life degrades broadly, unless you're super rich. That's why people hate open border policies. So the Brits decided to close up shop. It's a negative, and at the same time necessary.

    The UN needs new powers regarding the use of force to remove violent dicators/regimes from power. And 1st world countries need to funnell massive funding into 3rd and 2nd world countries (via the UN) in order to build prosperous and sustainable communities, so that people don't feel the need to escape.

    Easy to say. Easy to do.

    vote 1 GB
     
  13. Smurf1976

    Smurf1976

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    So far as the markets are concerned, I'm more worried about contagion than anything else.

    The markets have moved significantly. Some have made money whilst others have lost it. Quite likely, someone has lost rather a lot and that's the concerning bit. In due course we might find out someone big has actually gone broke, will default on something else, which then triggers someone else to default and we end up with a GFC-style event.

    I'm not saying it will happen but with such a sudden large move it would seem to be at least possible. Someone took on a big position expecting the "remain" vote to win and ended up with a big loss. Seems plausible to me.

    For non-market things, my real concern is that it will ultimately trigger a breakup of the EU as a whole. It could survive without the UK yes, but if another "big" country (economically) decides to pull out then it starts to become pointless for the rest to remain and then the whole thing falls apart. That's probably not a good thing in terms of maintaining peace in the region (in a military sense) over the long term.

    At the moment it's all speculation. We know that the UK has voted to exit the EU and that's it.

    We can assume but can't be 100% sure that they will actually go through with the exit, that's the first issue. Nothing is ever certain until it actually happens and that's particularly so when politics is the driving force.

    It's possible that someone has lost serious $ and is now broke but again we don't know that yet. Another possibility that may or may not eventuate.

    And we don't know whether or not any other countries will go down the same track. Another thing that's possible but thus far an unknown.

    The only real conclusion I can draw at this stage is that we're likely to see volatility both political and financial as all this plays out. It's quite possibly the end of markets going sideways in a narrow range and we'll see some bigger moves one way or the other. :2twocents
     
  14. overhang

    overhang

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    Wish I took the threat of the EU exit seriously and bought up on gold, what a safe plunge that would have been. If the vote was no as expected it would have been business as usual and a safe exit from gold and now we have gold up 10%.
     
  15. Caveman

    Caveman

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    I think it will be business as usual for the Brits let alone Australia. *Yawn*
     
  16. trainspotter

    trainspotter

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    So we will rebound 56 billion in one day? And that's just Australia !! Britain's vote to leave the European Union battered the British pound by more than 11%, in Japan, the Nikkei 225 tumbled to close 7.92 percent lower, UK's credit rating to suffer, Gold bounces to $1,300-an-ounce mark to its highest level in two years, Scotland's government want's independence from the U.K. after the "Brexit" vote and if you talk to basilio the global temperatures will rise by at least 0.02+/- in a week !!
     
  17. moXJO

    moXJO menace to society

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    What happens now?
    Juicy trades is what happens!
    Fear and greed at its finest.
     
  18. Caveman

    Caveman

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    Rebound to billions in 1 day! I doubt it,some blue chip stocks are just back to where they were in april or even still higher.As for the Scots perhaps they prefer the Auld alliance.I actually think I have missed out on some bargain hunting but we will see monday.:eek:
     
  19. Bill M

    Bill M Self Funded Retiree

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    Best post so far, did anyone notice how Aus bonds went up today? I might be selling mine for a nice profit soon. Then I will redirect those profits into the sharemarket when it tanks further. It won't be long until bonds start tanking and the sharemarket starts going up again, arrrrrh patience and diversification pays off. By the way, nearly all Aus share ETF's are going ex dividend within the next week, ssshhhhh don't tell anybody, sell, sell, sell.. Brexit, who cares.
     
  20. noco

    noco

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    The latest from the Courier Mail as to the affects on Australia.

    http://www.couriermail.com.au/news/...a/news-story/e2826b95d588a92e6ab6aa644118d0b6

    BRITAIN’S shock referendum decision to quit the European Union has unleashed a wave of global jitters which will immediately influence the outcome of our July 2 election.

    Markets of all sorts — stocks, futures, oil, butter — want certainty, and the Brits have removed that by a tiny majority of votes.

    Britain is only a minor player in our trade as we concentrate on the Asia-Pacific region and giants such as China, Japan, South Korea and India.

    But the flow-on effect of its withdrawal from the EU, and the wait while it renegotiates its trade agreements with Europe, will be felt everywhere. As one Australian economist put it today, this could be a further headwind to growth.

    Our dollar could fall in value and investment will be slow.

    The unsettled conditions are not of his making, but they could favour Malcolm Turnbull over Bill Shorten in the election.

    The uncertainty which will follow the Brexit victory will heighten an examination of the economic credentials of the Prime Minister and his team, and the Labor front bench under Mr Shorten — just as Labor is set to release its election promises costings.

    This will underline Labor’s strategy of increased spending and prolonged deficits.
     
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