Two things above all: Brexit is excellent news for Europe and the world, and the overnight market panic is overdone and not a sign of economic trouble to come. Markets first. How could markets get Brexit so wrong? Just as the ballot tally began last night, the U.S. 10-year T-note rose to 1.75 percent, along with global stocks and commodities in belief that Brexit would fail. Now 1.55 percent. The mortgage follow-through is muted, making 3.50 percent from 3.625 percent yesterday: In a panic, global money runs to Treasurys, not mortgage-backed securities (MBSs). Brexit is the most important European event since The Wall came down in ’89. It also marks one of the all-time greatest no-clothes events in history. German-dominated One Europe has been a stark-naked failure for a decade, the euro a disaster -- and everyone has known. But to say so has branded the speaker a xenophobic trog. How could markets get this so wrong? Bookies confessed last week that their cash ...
- German-dominated One Europe has been a stark-naked failure for a decade, the euro a disaster.
- The corruption of One Europe and its fellow travelers showed in the last two weeks, creating Brexit votes by the million.
- It is possible that Brexit will yank the pants off other follies, with economic effect, but not here. Next week, we’ll be back to watching payroll numbers and handicapping the Fed.