Friday, June 24, 2016

This is What Elitist Panic Looks Like: Statement of G-7 Finance Ministers and Central Bank Governors on Brexit

The statement ends by referencing unity and solidarity. Oh yeah, as the Brits break away from the EU!
Statement of G-7 Finance Ministers and Central Bank Governors

We, G7 Ministers and Governors, respect the intention expressed today by the people of the United Kingdom to exit from the European Union. We are monitoring market developments following the outcome of the referendum on the UK’s membership of the EU.

We affirm our assessment that the UK economy and financial sector remain resilient and are confident that the UK authorities are well-positioned to address the consequences of the referendum outcome.

We recognize that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.

G7 central banks have taken steps to ensure adequate liquidity and to support the functioning of markets. We stand ready to use the established liquidity instruments to that end.

We will continue to consult closely on market movements and financial stability, and cooperate as appropriate.

We remain united and continue to maintain our solidarity as G7.
-RW

3 comments:

  1. {We recognize that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.

    ...taken steps to ensure adequate liquidity...

    ...financial stability...}

    What good is a market if it can not fall as well as rise? In a free a market, liquidity isn't necessary, as shares will be exchanged at subjective values along the rise or fall of said shares. That's where short-covering comes in.

    Financial stability is rife with false price signals and only ensconces the ability of bad bet-makers to sleep well at night. They are the first that need to be shaken out. The entire statement reeks of moral hazard.

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  2. I find it strange that US markets/company shares are going down as much as they are.

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  3. "we ... respect the intention expressed today by the people of the United Kingdom ..."

    Gee, lying right out of the gate.

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