Today's scaremongering from the FT, via MBK (as usual):
A vote by the UK to leave the European Union risked triggering “sharp drops in equity and house prices, the head of the International Monetary Fund has warned in a damning assessment of the effects of Brexit.
Christine Lagarde, IMF chief, warned the consequences of Brexit ranged from “pretty bad to very, very bad”, precipitating a protracted period of heightened uncertainty, financial market volatility and a hit to economy.
Appealing to the Home-Owner-Ists is always a good strategy, but actually those are the two least important variables in the economy, they are just a measurement of other much more fundamental things, they are a symptom and not a cause. So output, profits and employment matter - share prices do not.
Moreover, they are just transfers of wealth, if house or share prices fall, tomorrow's purchasers benefit by in £££ the same amount that today's owners have lost on paper.
Debate Magazine
