We really shouldn’t underestimate the power that a continued financial slide will have. No politician is stupid enough to see Rome burn and not call in the fire engines at some point. Business will be screaming, the BOE will be screaming, other countries will be screaming through every channel possible, the Royal Family will be screaming – pressure to act will be mounting by the hour. Can you imagine even two more months (the Conservatives stated there would be a new PM on 2nd Sept) of decline for the £ and the FTSE? We’re in this position after two days!
In my opinion there are only four things which can bring (some) stability:
1) A snap General Election to form a new Government
2) Triggering Article 50 immediately
3) A second referendum which essentially says Vote to Remain or Vote to Leave, with the caveat that Leave triggers Article 50 immediately
4) A vote in Parliament to not act on the result of referendum