My point was that you can't take one single indicator like the £ as an indication of the state of the economy as a whole. The £ is low, but the FTSE is high. One suggests the economy is weaker, the other that it's stronger. Overall it's pretty stable still. And the £ will recover as soon as the initial jitters have subsided - and as soon as a certain Canadian with a point to prove starts considering a little more carefully what he says!

As for RBS they've been volatile for a while now and certainly don't represent a good indicator of anything.

choccymonster wrote:

............And so as billions of pounds/dollars/yen were wiped off of currency markets...............

tenet wrote:

I was going to tie some flies but had a last peek before sitting in front of the vice and yes Choccymonster has confirmed all of my points above - you don't need to be Einstein to realise that Brussels will not negotiate until and when article 50 is enacted. So all this boloxxs about not having a plan is just that, boloxxs.
Nothing much has changed and nothing much will change and for at least 2 years, and should a company that Choccymonster knows have folded then one wonders what sort of company it was, obviously with very little capital reserve to go under within a week.

Steve D wrote:

Can someone please explain to me just WHERE these millions of pounds/dollars go when the market dips?

The money is still out there. The value of an item only relates to how much someone will pay for it if you sell it. If you have a house worth £x and it burns down then it's not worth so much (except the plot value) so someone who would have paid £x for it yesterday now goes and buys something else. Incidentally this slightly increases the value of other houses as they are now in shorter supply.

Money is essentially a scoring system that tells you what proportion of the world's goods and services you are entitled to. 3 x FL1 2 manual + 1 auto
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pab wrote:

Steve D wrote:

Can someone please explain to me just WHERE these millions of pounds/dollars go when the market dips?

No, that would take a room full of economists and a lot of time! But essentially it is all hypothetical and all those 'lost' billions could magically reappear tomorrow. The markets work along the lines of chaos theory - Carney opens his mouth and a billion pounds disappear without even a puff of smoke...

But the same is true of your tenner. It's not actually ten pounds, its just a piece of paper with no intrinsic value. And the value of your tenner in terms of what it will buy can also change day to day - ten litres of petrol today, seven tomorrow - it's the same tenner but you're down three litres.

There's no such thing as real money any more. Even gold isn't what it used to be.