Brexit

Out of context: Reply #229

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    Goldman Sachs forecasts UK recession in 2017, downgrades global growth forecasts

    "Yes, quite a problem. Globalists are powerful banking elites who can bring pain to markets and control our politics."

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    Hey IRNIun6, I don't mean to single you out, but I wanted to just draw attention to this general sentiment. In a way, you're correct, banks have a ton of influence and they use that to control politics. And a Goldman Sachs forecast is one way of influencing the market in a big way.

    However, in this case, the Brexit result is not some banking elite power play.

    The vast majority of respected economists in the world predicted that a Leave vote would cause the pound and the UK markets to drop. It's extremely rare to have such a consensus among economists, and there it was.

    So, you've got all the economists (not only the banks) saying a Leave result will cause a huge drop in the stock market. What do you expect what would happen? Financial markets are "controlled" by perception. If everyone in the market thinks there will be recession, that itself will cause a recession. The market has always worked this way.

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    • Reaction and narrative of the consequences of the Brexit can be seen as a power play.IRNlun6
    • It's only natural for markets to react negatively to uncertainty in major political/trade organizations.IRNlun6
    • ANYTHING can be seen as a "power play", that's how the world and markets work, that's not unique or new. The point is WHAT happens and what is does to EVERYONEformed
    • The power play is in casting doubt on whether a countries leadership is capable of managing trade relations for their own nations.IRNlun6
    • And casting doubt on the reasons behind voting the way they did in the first place.IRNlun6
    • Uh, yeah, but my point is that essentially ALL the economists, (including ones who work for universities, not banks, for example) agreed on what would happen.
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    • It's not so much a 'power play' when everyone agrees and the bank isn't using it's power to control the outcome.
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    • It doesn't take an economist to know that the market would drop. What they do not have consensus on is long term since that is dependent of trade renegotiationIRNlun6
    • The last thing these global banking organizations want is for nations to be successful in determining their economic futures without them.IRNlun6
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