Friday, April 22, 2016

Public Favoring #Brexit While Establishment Does Not

The stakes of Brexit, in terms of an immediate contagion that will quickly spread throughout the EU and sending money running from the Euro before the next domino falls, makes a clean vote to deciding the future of British sovereignty unlikely. The Establishment its financiers favor the status quo, Britain remaining in the EU, while the public, expressing louder and more organized voice on social media wants out (see headline below).

Does the power to decide reside in the voters or those that count the votes? The world get an answer on June 23rd. If the vote is predetermined, invisible hand will drive another more difficult to control 'Brexit' in the years ahead.

Headline: Bond guru Jeff Gundlach says ‘Brexit’ won’t happen, but Twitter disagrees

Just as Scots didn’t vote to leave the U.K., Brits won’t vote to leave the European Union. That’s what bond guru Jeff Gundlach thinks — and he’s quite sure of it.

“It’s not going to happen,” DoubleLine Capital’s founder told The Financial Times in a Q&A published this week. “Look at what happened with Scotland. People aren’t going to pull a lever for Brexit, so I don’t even think that’s worth considering in the present time.”

There’s less than 10 weeks to go until the in/out referendum on the U.K.’s EU membership, and investors are trying to position themselves against the uncertain outcome.



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