NEW YORK (TheStreet) --Former U.S Treasury Secretary Larry Summers joined CNBC's "Squawk Box" to discuss the potential long-term and short-term impact he believes Brexit will have on International Markets.
Summers began by commenting on the prospect of public panic coming to an end in terms of the faith in international markets. "No one can know. Markets fluctuate," he said. "I would not be at all confident that the positive action that appears to be in train from the last few hours this morning means that the fever has broken."
Summers then echoed these are fundamental events savagely interrupting European integration, while expressing a lack of confidence in terms of market stabilization.
When asked to comment on the what he feels will be the next steps in such an interruption Secretary Summers relayed that there are a number of questions which must be answered in terms of the EU and the U.K.
"You've got a Variety of significant risks," Summers noted. Among these risks, the impact the Brexit will have on both Scotland and Northern Ireland who wish to remain a part of Europe, the effect of the EU financial sector, which for a large part has been headquartered in London, and the possibility of the Brexit setting a precedent of other EU exits in the future.
Secretary Summers is worried about the spread of populism, he noted that what most concerns him is "policy driving worse policy." "It's that kind of cycle that I'm nervous about," Summers concluded.