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$1T is leaving Britain because of Brexit

cnn.com

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Re: $1T is leaving Britain because of Brexit

#111

Post by cm2187 »

24gttghh wrote: post #91
GreaterFool wrote: post #10

> have shifted at least £800 billion ($1 trillion) worth of assets out of the country And what's the significance of that? Suppose I had $100 in a bank in UK and I moved it to a bank in Germany. Neither country is better or worse because of that. The article doesn't bother to explain the ramifications. Deals are made in UK because English law is really, really good. Having to maintain offices in EU will surely increa…

>Neither country is better or worse because of that. The article doesn't bother to explain the ramifications. This is not entirely true [0]. The money-multiplier effect would mean the bank in Germany then has something like ~$900 more dollars (converted to Euro's of course) that it could loan out. I'm not sure on their exact Reserve Requirement, but it appears to be less than 10%. Apparently the UK doesn't have much…

The UK has significant liquidity requirement.

Re: $1T is leaving Britain because of Brexit

#112

Post by laumars »

e1ven wrote: post #72
Loughla wrote: post #56

Earlier quoted context omitted.

>Money isn't the only thing in life. Disclaimer - I'm not trying to be hateful. That seems like a completely nonsense, garbage statement. Brexit is primarily about money and economics, from what I can tell on the outside looking in. So what was your purpose in writing that?

It sounds like his point is that even if there are fewer big banks, he might be able to buy/rent an apartment in more desirable areas of the city. I interpret his comment as pointing out a value to intangibles that are sometimes overlooked when viewing the country through a broad economic lens.

The people who will be hurt the most would be those who are at the bottom of the proverbial food chain to begin with. Desirable areas will still be expensive because people on high income or positions of power will still hold those positions. It's the lower / under paid workers who will see pay freezes and lay offs while the cost of living will continue to rise.

Instead of levelling the playing field, I expect the brexit will just create an even bigger divide between the wealthy and the poor.

Re: $1T is leaving Britain because of Brexit

#113

Post by Symbiote »

freedomben wrote: post #94
lazyjones wrote: post #50

Earlier quoted context omitted.

> The UK has traditionally punched well above its weight economically How is its trade balance doing lately? Not so good. https://tradingeconomics.com/united-kingdom/balance-of-trade > Being the banking capital of the EU is a huge contributing factor to that position, btw. I'm not sure what economic indicators you are talking about. Certainly none that reflects the actual well-being of the population.

I generally support Brexit, but I'm guessing for reasons much different than yours (I always favor decentralization as a way of increasing the power of the average citizen relative to their government). Maybe we agree? The trade balance tho is not typically a good indicator of economic health, at least not how it's typically pitched: https://mises.org/wire/nonproblem-trade-deficit

The average British citizen will probably have less influence after Brexit, since the EU electoral system is actually reasonable.

We'll be left with a first-past-the-post MP, and an unelected (sometimes hereditary!) House of Lords.

Re: $1T is leaving Britain because of Brexit

#114

Post by matthewmacleod »

muro wrote: post #58
matthewmacleod wrote: post #34

Earlier quoted context omitted.

Perhaps they're just not trying to see only the drawbacks and ignore successful non-members in Europe like Switzerland and Norway. That's a bit of a misrepresentation, because those "successful non-members" are members of the single market, which is currently something that the UK is actively trying to leave. Don't underestimate what's happening here – it would have been possible to execute Brexit in a relatively con…

Switzerland is part of Schengen (which UK is not), yet not a member of the single market - they are not in the EU for customs purposes, have many restrictions on imports (e.g. food).

Okay, you're right – it's more complex than I implied.

Switzerland is a single market participant through bilateral treaties, like Norway and Iceland are through EEA. While they aren't "members" of the single market, I think we'd usually consider those four EFTA countries plus the 28 EU states to make up the "single market", though I accept there is no clear terminology in some ways!

Still though, such a relationship is equally not the plan of the current UK government, and customs union membership is not a prerequisite for single market 'membership' as such.

Re: $1T is leaving Britain because of Brexit

#115

Post by growlist »

ticmasta wrote: post #100
growlist wrote: post #83

Earlier quoted context omitted.

For many people it was about regaining control of borders and reducing immigration. Personally I'm willing to trade off being a little poorer in exchange for being a sovereign nation once again, although the current direction of travel makes it look like we will be getting Brino i.e. Brexit in name only, about which by the way I'm staggered at how blithely people are willing to discard democracy when the result doesn…

> sovereign nation once again As a Canadian (and I imagine citizen of pretty much any non-european commonwealth country) I had to chuckle a bit. After being treated like a resource-extraction milking machine historically and then maintaining this pseudo-ceremonial allegiance to a royal head of state it seems funny for someone from the mothership to bemoan a loss of sovereignty and self-determination. No ill-will inte…

I'm basically a small c conservative, and I think the country is a far less pleasant place to live than when I grew up. If we want mass immigration we also need a massive house building programme, which might involve concreting over the countryside, or perhaps a proper regional policy. I don't see how we can have one without the other. If we were as big as Canada it would be a different story!

I went to the beach with the dog on New Year's day - there were thousands of other people, the roads were clogged, and it spoiled the experience. Buying in the countryside is often not an option depending on your career, because many jobs are only available in the South East, hence you are forced to live in a hyper-competitive area, fighting it out with millions of others for your tiny slice of England.

I'm just trying to explain that my reasons for wanting lower immigration have nothing to do with xenophobia, and everything to do with the realities of life in the SE UK. Injecting millions more people is going to make it a massive miserable conurbation, in my view.

Re: $1T is leaving Britain because of Brexit

#116

Post by olivermarks »

There is a massive 'fear campaign' drip dripping dire news in the UK every day if the people don't reconsider leaving a federated europe. The EU is well past its sell-buy date, won't reform and globalization has taken full advantage of its undemocratic structure for offshore commercial gain.

The divide and rule aspects of the UK EU referendum results are being exploited to the full. Like the last US election there is no good result for the English people - remaining or leaving are both going to have an ugly side. The City of London rules the financial world and enables incredible sums to float offshore via trusts and opaque corporate setups. What we are seeing is a further divide between the haves and have nots.

https://youtu.be/np_ylvc8Zj8 'At the demise of empire, City of London financial interests created a web of secrecy jurisdictions that captured wealth from across the globe and hid it in a web of offshore islands. Today, up to half of global offshore wealth is hidden in British jurisdictions and Britain and its dependencies are the largest global players in the world of international finance.'

This makes the consumer banks and FS firms shuffling fiat currencies around europe a tiny drop in the ocean

Re: $1T is leaving Britain because of Brexit

#117

Post by lazyjones »

Xylakant wrote: post #108
lazyjones wrote: post #98

Earlier quoted context omitted.

> It’s just that you cannot pick the benefits of being a EU member while shedding the obligations. Of course you can, it's a matter of negotiations. UK has/had plenty of exemptions as EU member and Switzerland for example is not part of Schengen but in the single market. It amazes me how people here think that the EU is somehow the entity that makes up all the rules. It's not, deals are bilateral.

Sure, deals are bilateral. Good luck trying to get the EU to give up one of its core principles to a country that cannot even get its government to agree on a consistent negotiation position.

> Good luck trying to get the EU to give up one of its core principles to a country that cannot even get its government to agree on a consistent negotiation position.

The UK government is far more consistent than the EU currently. Name one important issue where the EU has reached a satisfactory agreement and results. Migration? Social security? EU army? Nope.

But just like the tone of your comment, the EU position on Brexit is governed by arrogance, ideological motives and fear of a chain reaction, not reason. Therefore the result will likely be bad for both sides.

Re: $1T is leaving Britain because of Brexit

#118

Post by Consultant32452 »

myrandomcomment wrote: post #5

No surprise. Passporting (allow banks to operate in all members of the EU if they are licensed in one member) is a key to all of the banks operations. Every bank based in London for that purpose now has to open a regulated branch in an EU member. The next thing to kill the market in London will be the movement of Euro clearing to an EU member. Brexit is a self inflicted shot to the head. The number of people that sup…

I suspect it will take about ten seconds for the trade concerns the doom and gloomers are worried about to get resolved. UK is the second largest economy in the EU. The idea that they won't quickly and easily resolve trade concerns seems silly. EU member states will still want UK money.

Re: $1T is leaving Britain because of Brexit

#119

Post by joezydeco »

GreaterFool wrote: post #10

> have shifted at least £800 billion ($1 trillion) worth of assets out of the country And what's the significance of that? Suppose I had $100 in a bank in UK and I moved it to a bank in Germany. Neither country is better or worse because of that. The article doesn't bother to explain the ramifications. Deals are made in UK because English law is really, really good. Having to maintain offices in EU will surely increa…

So what happens (post-Brexit) if the GBP weakens and the EUR strengthens?

Does the location matter now?

Re: $1T is leaving Britain because of Brexit

#120

Post by yakshaving_jgt »

justaguyhere wrote: post #102
myrandomcomment wrote: post #5

No surprise. Passporting (allow banks to operate in all members of the EU if they are licensed in one member) is a key to all of the banks operations. Every bank based in London for that purpose now has to open a regulated branch in an EU member. The next thing to kill the market in London will be the movement of Euro clearing to an EU member. Brexit is a self inflicted shot to the head. The number of people that sup…

I don't feel bad (much) for those who voted for Brexit - all they had to do was spend 15 mins googling and thinking. Even if they didn't understand the full impact of leaving the EU, it was plain then (and now) to see it is such a bad idea from any angle. I do feel bad for those who voted to stay - they're gonna suffer now, despite voting responsibly and sensibly. I don't know how to take this - one way to look at it…

A democracy needs an informed electorate to function.

By your own admission, [the majority of] those that voted Leave didn’t understand what they were voting for.

By that measure, I don’t believe “democracy won”.

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