(CNN) – Americans seem lost over the EU referendum, or ‘Brexit’ for short, which may or may not affect their finances.
It’s actually a British exit from the European Union. The message on Wall Street – it’s time to start caring.
Keith Bliss, Senior Vice President of Cuttone and Company, said, “It absolutely will have an impact on Americans’ 401ks and their other investments.”
The threat of Brexit is already having an impact. It’s one of the reasons for current market volatility, even a Fed rate rise on hold.
Bliss says, “This is a tsunami, this is China melting down, this is Lehman going out of business in my opinion.”
It’s not the first dire warning, the U.S. President has said trade with the U.K. could suffer. Last year that was worth 56 billion dollars to U.S. businesses
President Obama said, “Our focus is in negotiating with a big bloc, the European Union, to get a trade agreement done and the UK is going to be in the back of the queue.”
The more optimistic in New York’s banking community say that is premature.
Steven Ricchiutto, Chief Economist of Mizuho Securities USA says, “We’re not going to turn around to the UK and say ‘No, you can’t bring Jaguars in’ so what we’re going to do is extend out any trade relationships until we figure out a new workout process.”
Three and a half thousand miles from the U.K., it is hard to imagine what Brexit would feel like. Talk show host Seth Meyers used another British export to explain it. “Look at it this way: when Zayn left One Direction, it was ok, but if Harry leaves, that’s it, it’s over.”
A word scramble for sure, but an economic scramble for the U.S.? Well…it depends who you ask.
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