Switzerland declares war on investors ecrresearch.com
If there was something like an Quadruple A rating for a country, then Switzerland would have it given its sound public finances, prudent fiscal policy and a healthy economy. No other Western country comes even close to that…
One thing we are not mentioning here is the credible role of CHF as a shadow currency of the world which also adds to the performance of CHF vs USD / Gold.
If the SNB is not willing to take more decisive action against the CHF strength, all government support is in vain. Yesterday morning, the Swiss central bankers had disappointed in this respect. For the third time since August 3rd, they increased the banking system’s liquidity by increasing their CB account holdings (from CHF 120 bn to CHF 200 bn). But do the Swiss central bankers really believe that this measure would have any positive consequences for EUR-CHF – after two other steps of this kind (which had increased the accounts from CHF 30 bn to CHF 120 bn) had failed before?
according to zerohedge, SNB just had to go to Fed as central bank lender of last resort and borrow 200mill, first country to do so in a long time
USD/CHF looks like it has bottomed so either 1) shorts are covering 2) the SNB has some ideas 3) the Swiss gov’t will act. Imagine the money to be made in short CHF positions if/when the global economy turns around. It will be epic.
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