robin1234

Eh what? I never made such a comparison. I never mentioned Germans, or Jews.

robin1234

You are making no sense at all. Post 147?? What about it??

katzgar

My mistake I was still responding starting with post 136

robin1234

Ok, fair enough.

lansbury

Perhaps someone could explain the correlation between how the Native Americans were treated and the £/$ exchange rate today?

katzgar

I didn't start this diversion you are confused

mrken30

I was thinking the same thing.

The pound seems to have found a new level in the $1.30's

Pulaski

An intermediary step predicted by Godwin's Law?

lansbury

I suspect this isn't over yet. My guess when we invoke Article 50 it will set things off again, as not doubt will other developments as matters progress. All we can hope is there is some upward movement between the drops.

sir_eccles

Someone pointed out that the market reaction to all this is just that, a reaction of shock at the decision. Whereas the market reaction to the recent housing crash was more to do with fundamental monetary issues. At this point there are no actual monetary issues, no mis-sold mortgages etc. So just fear and uncertainty of what is to come. As you say when art 50 is invoked there may be another reaction.

RoadWarriorFromLP

It sends a message that the government is inept for allowing this to happen and it creates uncertainty. To some extent, you can regard exchange rates as a sort of national stock price, and the mood about UK Inc. is clearly bearish.

This is particularly bad for foreign investment in manufacturing and production. For example, why would some of the largest automakers in Britain (Nissan, Toyota and Honda) expand their local production when the tariff regime is now been thrown into question? It's easier to avoid additional investments altogether, since it makes more sense to favor building for the 400+ million market rather than the 60+ million market.

On the other hand, this may also contribute to the ongoing property bubble, since it just became cheaper for foreigners to buy real estate. (Tariffs obviously aren't an issue for that, and these days, there is too much money chasing too few deals.)

mrken30

Also if investing in the UK means that you have to deal with the visa process every time you want to send people from your head office in Frankfurt this is a minor but added overhead.

The other thing is a lot of UK manufacturing and farming relied on European labour, will this still be available in 3 years time?

There are some speculators that pound could hit parity, Soros only forecast $1.20

http://www.marketwatch.com/story/bri...016-2016-06-27

the fallout from 2008 crisis didn't really take full effect until April 2009

RoadWarriorFromLP

It's akin to hanging up a "Sorry We're Closed" sign and then being shocked that business ain't what it used to be.

But hey, if they end up with fewer Polish bus drivers, then mission accomplished!

mrken30

Unless that was the driver of the number 10 bus that you used to take to work.

It may be more of an issue with fewer Polish surgeons is you are in need of a surgeon.

jeepster

Lower valued currency would be good in the long run for British economy. More tourism, more exports less imports. The British economy needs reform, this may be the catalyst. If managed properly there's no reason why Britain could not become another Switzerland which incidentally has the highest standard of living in Europe.