The Swiss Shock

The Swiss Shock

Postby Speak-Ez on Fri Jan 16, 2015 10:43 pm

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We decided to wait a few days before we put up a topic on this because everything was in turmoil when this all started and we wanted the dust to settle a bit.

Matters are still very much unsettled even now, but we can't wait any longer to get this up.

I will offer the following link to a BBC page of search results:

http://www.bbc.co.uk/search?q=Swiss%20franc

The word 'stunned' seems to pop up a lot on all websites, but how about a recent post at CNN?

There will be a video on that page which will start on its own, by default. I don't think it's too intrusive, though. After the link, I'll quote the first line of the article.

Interesting how some editor at CNN decided to invoke that idea of bleeding. But that is the sort of dramatic language we've been seeing since this started. My many news alerts are rife with such vocabulary. For me, though, I first got the hint from my daily watching of the international currency markets. Something looked very odd and when I went into my various news alerts I saw feeds that were pretty much like, Bam, We Didn't See That Coming!

Anyway, the CNN page.

Swiss companies and currency brokers bleed

Swiss stocks plunged again and currency brokers licked their wounds Friday as markets reeled from the country's shock move to stop pegging the franc.


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Re: The Swiss Shock

Postby burnt fare on Sun Jan 18, 2015 2:34 pm

Can't say I know what this franc pegged to the euro situation is about. Speak-Ez has posts a few years ago about the tax pressure by the US authorities on Swiss authorities to reveal which bank account holders were US citizens. IRS has to ensure it's getting their income tax returns and accounting for all income, you see.

Could there be a relationship between the tax situation and the currency issue?
Burger time
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Re: The Swiss Shock

Postby Speak-Ez on Mon Jan 19, 2015 2:41 pm

Bloomberg has an interesting article about the hundreds of millions of dollars in losses so far by various banking groups and the article goes on to state the following:

“The losses will be in the billions -- they are still being tallied,” said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. “They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system.”


Read here: http://www.bloomberg.com/news/2015-01-1 ... nting.html

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Re: The Swiss Shock

Postby flipflop on Mon Jan 19, 2015 3:46 pm

Federer is the biggest earner in his sport with a record $88.7 million in prize money alone. He makes more than $56 million a year both on and off the court from endorsements with companies including Nike Inc., Credit Suisse Group AG and Rolex Group.

He said he was concerned about the impact on the Swiss economy.

“The way it was done, maybe there were some question marks behind that because nobody saw it coming,” he said. “For export or tourism it’s not ideal, but we’ll see how we’ll adjust to it now. Still think it’s a wonderful place to visit, so please come.”



http://www.bloomberg.com/news/2015-01-1 ... franc.html

Been wondering how people like Roger with the nice big bank accounts would do. He will not suffer, and is sitting pretty on his glass mansion while the peasants are scrambling and suffering below.

Once safe Switzerland is no more. Only good benefit may be cheaper for tourists to afford to go there, raising the rates would be a huge business mistake right now.
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