It's becoming a common theme - The English have turned in another disappointing result.
If you live under a rock you may have missed The Three Lions going down to Iceland, a country with 0.06% of their population. The 2-1 loss is being hailed as their most humiliating defeat at a major tournament. And it looks like the downward trend of all things British will continue off the pitch. The last week has seen them renounce their EU citizenship, lose their Prime Minster and topple out of the Euros. But it seems the worst is still to come.
In the short run, uncertainty about Britain’s future relationship with the EU, its largest trading partner, could push the UK into a recession. Friday saw huge market volatility. The British pound has lost about 9 percent of its value since Thursday's vote, and Britain's FTSE 100 stock index lost 3 percent of its value in Friday trading. When you consider that the FTSE is priced in pounds, that means British stocks are down more than 10 percent in real terms. And that volatility reflects market worries about more severe consequences in the months ahead. With Cameron out of power, Britain’s prospects of negotiating a favorable deal with the EU could be weakened. The EU may decide to strike a hard bargain to discourage other countries from leaving the EU. That could create serious problems for businesses based in the UK.