It's official—Brexit's 'Black Friday' selloff was the worst ever at $2 trillion
Markets hemorrhaged more than $2 trillion on Friday, according to data from S&P Global, the worst on record. For context, the whipsaw trading sessions of the 2008 financial crisis were eclipsed by the fallout from Brexit, according to S&P analyst Howard Silverblatt.
The prior one day sell-off was $1.9 trillion back in September of 2008, Silverblatt noted. According to S&P's Broad Market Index, combined maket capitalization is currently worth nearly $42 trillion.
"Brexit is the biggest global monetary shock since 2008," said David Beckworth, a scholar at the Mercatus Center at George Mason University, in a blog post on Friday.
"This could be the tipping point that turns the existing global slowdown of 2016 into a global recession."
Beckworth also noted that risks stemming from the U.K.'s decision is "hastening the the frantic race to bottom on safe yields." Safe-haven government bond prices have soared around the world, pushing yields to near-historical lows. Bond yields move inversely of prices.
Massive demand for safe-haven assets is outstripping supply, he added, meaning currencies like the yen and U.S. dollar, as well as government bonds and gold, are likely to keep booming.
Since Brexit became a catchphrase for markets, risk-averse investors have destroyed vast sums of wealth in fear of the potential shockwaves that could ripple through the global economy. Although analysts say an affirmative U.K. vote was always a possibility, markets appear to be preparing themselves for even bigger ructions—making more losses all but certain.
http://www.msn.com/en-us/money/marke...T7o?li=BBnb7Kz
but "official leave camp" says that "the storm was over by the tea time on friday"
). It's not realistic.
