Tags: jim cramer | brexit | invest | mistake

CNBC's Jim Cramer: Brexit Is 'Dumbest Financial Mistake I Can Ever Recall'

CNBC's Jim Cramer: Brexit Is 'Dumbest Financial Mistake I Can Ever Recall'
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By    |   Tuesday, 28 June 2016 11:29 AM EDT

CNBC's Jim Cramer is blunt about his dislike of Britain's vote to leave the European Union.

"Brexit was the dumbest financial mistake I can ever recall, a genuine Humpty Dumpty move, and all the queen's horses and all the queen's men probably can't put the union back together again," the "Mad Money" host said on CNBC.

Uncertainty and anxiety over the economic fallout from Britain's vote to leave the European Union has roiled global financial markets since Friday and prompted ratings agencies to slash their top-shelf credit rating for the U.K.

"Trillions of dollars have been lost in value worldwide, and Cramer says it all was because the U.K. didn't bother to think things through. That is why he took the time to detail how stupid the vote really was, and just how unprepared the British government was for the results," CNBC reported.

"Cramer boiled the exit vote down to two issues: net fees that Britain pays to the EU and the immigration issue," CNBC reported.

Cramer doubts any other country would make the same dumb mistake. "The financial penalty for leaving the EU is now so palpable that only the most extreme of xenophobic nations would even debate the issue," Cramer said.

Meanwhile, U.S. stocks opened higher Tuesday as investors rushed to pick up stocks after Britain's decision to leave the European Union sparked a massive two-day selloff in global markets.

Banks, which were the worst hit since the referendum on Thursday, were among the most attractive stocks for bargain hunters.

"That means the sell-off we are currently experiencing is NOT related to U.S. credit, and that is what makes this storm worth riding out. There is no systematic risk here; our banks will come out winners, no losers when the smoke clears, and it always does," Cramer said.

Cramer also turned his attention to high quality U.S. companies that could continue to do well regardless of what happens overseas. One of those companies is IDEXX Laboratories, which makes veterinary testing equipment and is the world leader in diagnostic tools for animals.

Meanwhile, not everyone is as gloomy about how Brexit will change the world.

Newsmax Finance Insider Mohamed El-Erian sees two silver linings.

"First, the referendum could end up solving a fundamental contradiction within the EU," he told Yahoo Finance. "Since it first joined 40 years ago, the UK has treated the EU as a super free trade arrangement. That is, an end in itself. Not so for some other influential members, including Germany. For them, the EU was a means to the “ever closer union” that the founding fathers envisaged. And this has economic, financial, political and social aspects that the UK could never accept," he explained.

"A Brexit resolves this basic inconsistency, albeit with a sizeable transition cost, including lower growth and a higher threat of recession, and considerable risks to the overall integrity of the EU," he said.

"Second, the referendum could act as a wake-up call for polarized politicians who have repeatedly failed to implement the package of required policies. A Sputnik economic moment if you like."

(Newsmax wire services contributed to this report).

Mohamed El-Erian is the chief economic adviser at Allianz SE. To read more of his blogs, CLICK HERE NOW.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
Jim Cramer is blunt about his hatred of Brexit.
jim cramer, brexit, invest, mistake
539
2016-29-28
Tuesday, 28 June 2016 11:29 AM
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