Britain created history on Thursday night, voting to become the first country to leave the European Union, with a 52% to 48% split in votes to get out of the EU.
Market reaction was insane, with assets across the board getting crushed. The pound saw its biggest single-day drop in history, European and US banking stocks crashed lower, and safe haven assets like gold took off upwards.
Soon after the vote was confirmed, the Bank of England announced that it is "ready to provide more than £250bn of additional funds" to the UK's financial system. Simply put, Brexit totally freaked participants in the global financial system out.
As with all major economic events, analysts from research firms, hedge funds, and banks all weighed in with their opinions on what Brexit means for the markets and for the global economy. Business Insider decided to take a look at some of the most interesting and insightful analysis provided since the result became clear early this morning.
Take a look below.
Morgan Stanley
What they're saying:Morgan Stanley focuses on the potential for the introduction of helicopter money in the UK, as the Bank of England potentially looks for a new way to stimulate growth.
"We see a possibility of a more radical fiscal and monetary policy option to help a UK economy suffering from a referendum recession. The objective would be to provide policy support through a targeted intervention with a high multiplier - use-it-or-lose-it consumption vouchers for the liquidity-constrained. We see this as a form of government money, which would ultimately be backed by long-term government debt held by the central bank."
Nomura
What they're saying: Understandably, Japanese bank Nomura focuses on the potential impacts of Brexit on Asia. Nomura sees Asian growth stalling and major central bank stimulus as a result.
"To assess the global impact of this surprise result, it is important to look beyond the trade channel. Once the financial, confidence and psychology channels are taken into account our warning is to not underestimate the depth and reach of financial market contagion to Asia."
Goldman Sachs
What they're saying: Goldman's focus is on what will happen to the government debt markets. This is what analysts led by Peter Oppenheimer had to say:
"Markets’ increased conviction that the UK would vote to Remain in the EU, particularly in the last 48 hours, is likely to raise the immediate flight to safety. On past form, the implied scale of an uncertainty shock could lower 10-year Gilt yields to below 1%, in short order. German Bund yields could be depressed further, to -10/15bp, while US Treasury yields could rally to around 1.35%."
See the rest of the story at Business Insider