Financial markets underestimated the outcome of last Thursday’s vote by the United Kingdom to leave the European Union as Wall Street continued Friday’s selloff triggering uncertainty in the markets.
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During an interview on the FOX Business Network’s Cavuto: Coast-to-Coast, former FDIC Chair William Isaac said panicking is never a good course of action during dramatic and volatile markets.
“I think the reason why the markets are hit so hard right at the moment is because they were surprised. I don’t think people were expecting the vote that we had and they expected a very different outcome. When they get surprised is when people say, I don’t know what to do,” Isaac told host Connell McShane.
Isaac said the markets should begin to settle to normal levels once people realize what really occurred, but cautions that instability will continue for some time.
“There will be turmoil, ups and downs, for a while. I don’t see anything here that causes me to think the long term future of England or Britain is in doubt,” he said.
The former FDIC Chairman said he has great confidence in Britain and envisions London as what he calls “a great market place that people can’t ignore.”