Brexit started a downward spiral that will more than likely take decades to get over. The stock market has been plummeting ever since this disastrous decision was made. They have inadvertently set the stage for a negative effect on the world's economy. Unfortunately like the United States the electorate wanted to send a message to the government that they did not want things the same as usual. They wanted to "shake things up". Well, they shook things up alright...to their own detriment. The pound is now worth less and they have less economic power. They were sold a bag of goods and have now woken up to regret.
Although the initial plunge of the stock market following the Brexit vote may seem ominous, the reality is that nothing has happened yet. Separating itself from the EU will be a long and arduous process for the U.K., which will allow time for the economy to adjust. Furthermore, the decision also has to be approved by Parliament, and in the meantime, the U.K. may hold a second vote in order to determine its fate with regards to the EU.
The economy will adjust to Brexit and will not collapse. Although the market has been hit in the past few days there will not be any harsh collapse because of Brexit. Governments and people are overreacting to the people's choice to leave big government behind. The UK will still be a major player and will help the economy out.
No, Bexit does not spell disaster for the world's economy. It has caused a momentary scare because it shocked the world and now people are unsure of what will happen. Britain has no clear plan about how they will exit the European Union. They have no clear idea of who will be in leadership of their country. Most people were not even aware the European Union existed. There is just a great deal of uncertainty that has been reflected in the stock market recently. It will level out at certainty settles in.