How Vulnerable is the Shaky US Economy to Brexit Fallout and European Bank Meltdown?

• How Vulnerable is the Shaky US Economy to Brexit Fallout and European Bank Meltdown?
  by Wolf Richter • June 27, 2016, http://wolfstreet.com/
  Business optimism “lowest since the height of the Financial Crisis.”
  You know things are getting bad when our leaders call for calm. US Secretary of State John Kerry just did that. 
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  “It is absolutely essential that we stay focused on how in this transitional period, nobody loses their head, nobody goes off half-cocked, people don’t start moving on scatter-brained or revengeful premises,” he told reporters in Brussels on Monday after Brexit had thrown the EU into political turmoil, while European bank stocks had their worst two-day meltdown ever, on the toxic mix of Brexit and a full-blown banking crisis.
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  And all kinds of things are suddenly happening.
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  Fed Chair Janet Yellen was supposed to speak at the annual central-bank shindig in Sintra, Portugal, organized by the ECB. It started on Monday. But Bank of England Governor Mark Carney had bailed out after the Brexit vote. Then an updated version of the event program showed on Monday that a panel with Yellen, Draghi, and Carney had been taken out. The Fed confirmed that Yellen, after the weekend meeting of the Bank for International Settlements, was returning to the US.
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  There are more important things to see to – even in the US, where the mood on Wall Street is suddenly souring.
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  “We have never seen a set of analysts’ notes as negative and scary as these,” Business Insider explained.” Before the Brexit vote, “economists at the major banks expected the UK to continue growing, albeit at a slower pace, into the foreseeable future.” But… “‘Recession,’ ‘contagion,’ and ‘stagflation’ are the words they’re using now.”
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  Here are some tidbits from BI’s report:
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  read more.

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