The shock waves of the decision by British voters to leave the European Union began almost immediately after the polling booths closed Thursday night. The British pound plummeted against the dollar, the Dow tanked , and experts predicted years of uncertainty in the United Kingdom and Europe. Here are five immediate takeaways.
1. Economic instability : Economic forecasts predicted a prolonged recession in Europe and the United Kingdom after a Brexit vote. Sebastian Mallaby, a senior fellow at the Council on Foreign Relations, explained why in an op-ed published last week in The Washington Post: British regulations, derived from EU rules, will have to be rewritten wholesale. Nobody will know for some time what will happen with Britain's commercial relationships with its trading partners or its membership in the EU single market. Global businesses based in London will begin considering whether they should move, triggering a potential real estate bust — and anyone who lived through the 2008 recession knows what that would mean for consumer spending.