TNT: Karla: Im Swiss... born Swiss, born American - and heres what the Swiss really did today... Watch this: bloomberg/video/snp-what-made-them-end-the-minimum-exchange-rate-yDVPsbYUS_qRBCXAYyJhqA.html Switzerlands hand was forced. ECB will raise Quantitative Easing next week, and Russia a couple weeks earlier. Three years ago the SNB agreed to peg the Swiss Franc (symbol CHF) at Eur/CHF 1.20. Because the Euro experienced the volatility, yes, it took out companies and bankrupted investors. Look here: bloomberg/news/2015-01-15/new-zealand-currency-broker-closes-on-losses-after-swiss-shock.html Heres an article that I emailed my group this morning: abcnews.go/International/wireStory/swiss-national-bank-scraps-minimum-exchange-rate-euro-28239702 People, please, if you dont know what youre talking about, please, please please dont spread rumors. The Swiss National Bank (SNB) didnt do this because they went onto the gold standard as some in this forum have postulated! A few weeks ago, because Switzerland is a direct democracy - one man (or woman) one vote, the Swiss defeated a referendum which would require the CHF to be 20% gold backed! Think about this, even if they choose to do it by referendum, even the Swiss will have to comply with Basel III regulations... geez, its whats happening in their own back yard, in Basel, Switzerland!!! Hey guys, and gals, this is just the fat lady exercising her vocal chords backstage! The weakness in the Euro forced Switzerlands hand and they decided not to artificially prop up the currency of 19 of the 28 member states of the European Union: Austria, Belgium, Cyprus, Estonia,Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Look at it from the viewpoint of the SNB... why, on earth should little Switzerland have to prop up the currency of 19 other countries artificially if the President of their Central Bank is gearing up to do USA style quantitative easing? As Tony says... whom does that make sense to??!! Just some food for thought! Karla More Info: Research and learn for yourself.. this will help post RV! bloomberg/news/2015-01-15/mayhem-erupts-on-trading-floors-after-snb-s-currency-shocker-.html Even Swiss companies were taken by surprise: bloomberg/news/2015-01-15/swiss-exporters-face-tsunami-after-snb-unexpectedly-drops-cap.html Now the Yen is climbing against the Euro: bloomberg/news/2015-01-16/yen-reaches-3-month-high-versus-euro-as-swiss-franc-roils.html and the powers that be want you to believe that US equity markets (US Stock markets) are the answer... but my two cents, careful, theyll pull the rug out from under us there in just minutes! I was at the trading desk in 1987 when that happened! Really! I was an equity trader at an American bank in Switzerland. I watched Black Tuesday happen! Heres one more article: businessweek/news/2015-01-15/u-dot-k-dot-stocks-advance-as-miners-rebound-from-worst-drop-since-2011 **********************************
Posted on: Fri, 16 Jan 2015 17:24:02 +0000
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