Financial markets underestimated the outcome of last Thursdayâs vote by the United Kingdom to leave the European Union as Wall Street continued Fridayâs selloff triggering uncertainty in the markets.
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During an interview on the FOX Business Networkâs Cavuto: Coast-to-Coast, former FDIC Chair William Isaac said panicking is never a good course of action during dramatic and volatile markets.
âI think the reason why the markets are hit so hard right at the moment is because they were surprised. I donât 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 donât know what to do,â 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.
âThere will be turmoil, ups and downs, for a while. I donât see anything here that causes me to think the long term future of England or Britain is in doubt,â he said.
The former FDIC Chairman said he has great confidence in Britain and envisions London as what he calls âa great market place that people canât ignore.â