--- schrodinger's EU Right now the EU exists in two states. 1 || Weakened by the leave of the British - it will disintegrate. First from the periphery and the

--- schrodinger's EU Right now the EU exists in two states. 1 || Weakened by the leave of the British - it will disintegrate. First from the periphery and then one of the core members like France. This disintegration will result in a liquidity crisis as entire countries default on their debt, plunging the entire world in a recession. The worst hit would be the countries within the EU. Germany's currency will have the highest appreciation similar to when Japan allowed appreciation of their currency - resulting in Germany having a few lost decades. Britain will the least effected - it will really bad - but not as bad as the euro countries. 2 || The EU project moves towards faster integration. The EU is no more paralyzed by British malaise. Merkel realizes the dire problem the EU faces and accelerates the formation of a central command for the EU army - allowing it to deal with any migration crisis in the future. Allows more democratic representation in the EU. Scottish Independence is one bad British recession away. UK disintegrates into just England. London is unable to support itself due to the mass exodus of the financial industry ( who is going to pay for Crossrail ? ) The only thing for certain is that if you are buying index funds is a bad idea to buy British stocks as they are unlikely to give as good returns 30+ years from now - when you are about to retire.