A brief glance at the calendar tells us that the United Kingdom is scheduled to leave the European Union in 30 days. While Prime Minister Theresa May insists that it’s still possible, no one believes her, and really, why would anyone at this point? Anyway, Steve Eisman doesn’t believe her, but still thinks that no matter how much extra time she gets she’ll find a way to muck it up, and that make Anyway, Steve Eisman doesn’t believe her, but still thinks that no matter how much extra time she gets she’ll find a way to muck it up, and that makes now a good time to short some British banks.
“Nobody has a freaking clue,” Eisman, 56, who famously foresaw the collapse of subprime mortgages before the 2008 financial crisis, said in a telephone interview. “The situation is so fluid that it will be foolhardy to take a large position either way….”
“Nobody can have a long-term view about the health of the U.K. economy if there’s a Brexit,” he said. “But I do know that the assumption of U.K. investors is that if there’s a Brexit, the U.K. will go into a recession….”
“I suspect we will be talking about the Brexit at least through the summer,” he said.