InternationalInvesting

Why ‘Brexit’ happened — and why it’s good news for the economy

The overnight market panic is overdone and not a sign of economic trouble to come
  • 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.

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 ...