30 May 2005

Fallout From the "Non" EU Vote

The French have voted NO on the EU Constitution.
Holland and Denmark are scheduled to vote soon, and may also vote "NO".

The long term fallout from this is impossible to predict, but it will be interesting to watch the near-term reaction of the rest of the world.

I would think there will be an immediate flight back into U.S. dollar assets, positively affecting our Bond and Stock markets, at least in the short term.

The negative effect on European Nations will make them less able to buy our exports, and that will have a negative long-term effect on our economy.

Is this the beginning of an economic "sea change"?

Keep your eyes open.

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