Brexit: All Eyes On European Banks
By Tyler Durden
Submitted by Lewis Johnson via Capital Wealth Advisors,
“If you go then I’ll be blue cause breaking up is hard to do.”
Neil Sedaka
“France and Great Britain shall no longer be two nations, but one Franco-British Union. The constitution of the Union will provide for joint organs of defense, foreign, financial and economic policies. Every citizen of France will enjoy immediately citizenship of Great Britain, every British subject will become a citizen of France. “Proposal from England’s War Cabinet to France in May of 1940 in the hope of keeping France fighting the Nazi invasion“The greatest disappointment of my political career.”French Prime Minister Paul Reynaud expressing his disappointment with the failure of the above initiative“Hell is truth seen too late.”Hobbes“War is horrible…but slavery is worse.”Churchill“The end was contained in the beginning.”George Orwell“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”Thomas Jefferson“All political parties eventually die choking on their own lies.”Mark Twain
We cannot shake Orwell’s haunting comments from 1984 that “The end was contained in the beginning.” Somehow it strikes us as foreboding when we contemplate the upcoming English referendum (called “Brexit” by the media) on whether or not England should leave the European Union (EU). Will the EU’s end be contained in its beginning? Is it time to think more expansively about how far the cycle may run – in the opposite direction – from the near complete unification now manifest in the existing EU to what may come after?
In our experience, cycles generally overshoot from one extreme to the other. “Thinking the unthinkable” is often the hardest exercise of all in cyclical investing. If the EU’s intellectual genesis was forged in armed conflict, could a vote to leave the EU set in motion a cycle that may, in the fullness of time, complete the cycle and result once again in armed conflict? Surely, that possibility seems laughable – for now. But the ability to ask seemingly radical questions and consider their answers with an open mind are hallmarks of the best investors.
Europe has been …read more
Source: Brexit: All Eyes On European Banks
