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Euro-Swiss Drops To All Time Low As European Flight To Safety Accelerates
And while stocks once again float off in some imaginary universe of their own which has no correlation to reality (and all correlation to the frequency of 19 year old math quants' night life excursions), Europe is getting worse, as the FX flight to safety accelerates. Following earlier speculation that Dexia may be in trouble, or who knows why, the CHF just spiked higher as both USDCHF and EURCHF pairs snapped lower, with the second hitting a fresh all time low. Keep an eye on what is going on here, as for the time being this is the flight to safety trade. In the meantime, and as usual, our condolences to Swiss exporters.
USDCHF:
And an all time low in EURCHF:
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Time for SNB to get their hands dirty
Yes, and click below to see a graphic illustration of bankster's dirty hierarchy of needs:
http://thesilvergoldhedge.blogspot.com/2011/05/banksters-dirty-hierarchy...
you cant intervene against a flight to safety...
but what would be doable for SNB is to make its safe haven a little less safe....
how can they do that?
I can fix it in fifteen minutes.
:D
Hildebrand: Swiss banks are under considerable pressure from Eastern European mortgage holders, whom we believe will begin defaulting in record numbers this summer.
That's pretty much all he would have to do. Fourteen minutes to set up the podium, thirty seconds to say the words and another thirty seconds to watch their faces.
You have to ask yourself why isn't he doing that? If they were really that concerned, he could certainly at least "leak" something halfway juicy. To me, he's not doing that for a reason.
Must not be part of the plan.
:D
That solution is just as artificial as the the run up in CHF.
The truly perverse aspect is that since the unwind tends to be faster and steeper then the ascent when the SNB was building reserves- the big RISK ON unwind will probably generate huge F/X profits as well as make Swiss exports more attractive again.
Central Banks should not be run as for-profit prop trading desks, the goal is supposed to be economic and price stability. Granted this can appear impossible when confronted with the Bernanke-Trichet-Shirakawa triumvirate (Hewlett Packard, Olivetti, Richoh keiretsu), but it not like there is a shortage of smart fiscally conservative bankers here who help can develop possible solutions.
PH is neither an intelligent nor a funny guy, rather a person you want to avoid inviting on a week long sailing trip in Croatia. His entourage is full of boring wimps who change their mind and attitude like we change our underwear, daily i hope.
The CHF is just going to be one of the last dominoes to fall, nothing else. Not much of a safety in my opinion, but obviously most of people have missed the chance to get on the PM lifeboat, and are too scared to try and catch up now that the price has already gone a bit higher. The eastern european mortgages in CHF are much more toxic than subprime in USA, but it seems too complicated to know who is going to suffer from these defaults. Is it going to be Swiss banks?
Metals: the true flight to safety.
05-25 11:19: Greek PM says speculation on default, restructuring does not help Greece 05-25 11:13: Greek PM says Greece is a victim of speculation Look at the instantaneous PM spec reaction to these recent blurbs from Greek PM.
Those evil evil speculators!
I'll have to go to the supermarket and check how much a bottle of "RIVELLA" costs now...
Kewl, Tissot watches 20% off
"In the meantime, and as usual, our condolences to Swiss exporters. "
Classic Tyler!
Speculators are stockpiling Lindt bunnies as we speak.
Yep.
...and our congratulations to Swiss importers!
Kewl, Tissot watches 20% off
Where?
price increases all over the place for food and beverage in CH
Meanwhile, in a galaxy far far away:
05-25 11:30: European Equities Close (Prelim): FTSE +0.29%, DAX +0.33%, CAC +0.37%, Eurostoxx +0.58%Yes, they all rallied on the back of the excellent durable goods orders to close the day green....
:-0
Sure gald all is well here and we do not have those problems. Thanks Bernank. lol
Speaking for myself, I'm just gald to be here at all. ;- )
My PMs are looking a tad shinier today...
Thanks Tyler,
The most funny thing
Tomorrow is another BRadley Turning point day....26th may....
I expect high volatility till monday
my horoscope said the same thing!
Very bullish for stop-sweeping.
Nifty still moving playing in channels...expect 1 more down day.
http://markettechnicals-jonak.blogspot.com/
The Franc and the Euro are one of the same since the SNB sold half of the Gold.
Its fiat baby.
The SNB does have leverage over the world's highest concentration of good delivery bar refiners, and a whole bunch of crappy fiat to play with. Since the gold reserves are actually marked to market each day, why not increase them each day? Hildebrand would be putting serious, but indirect pressure on the other central bankers to reduce excess flows into CHF and strengthening the SNB's balance sheet at the same time.
Yeah, but what's maybe more important is they still hold most gold per person:
http://www.economist.com/blogs/dailychart/2011/04/gold_reserves
Talk about least bad.
Edit: link doesn't work anymore. Google "gold reserves per person" for it.
European on my shoe.
And while stocks once again float off in some imaginary universe of their own which has no correlation to reality (and all correlation to the frequency of 19 year old math quants' night life excursions)
Classic...and exactly what I was thinking. It's as if they frontran the news with an expedited Portfolio Balance Channel and got the interns in early to smooth out these very natural markets....
Oh, reeeeeaaaaaaallly, now?
Taking from Berskank's playbook. Refer to the entire debt, not pieces here and there.
Yes I was reading about the implications of the strength of the Swiss Franc only yesterday.
The result is a poisonous cocktail particularly for Eastern Europe...
Actually it is a bigger problem for the ECB & IMF than Greece, if not properly contained.
by Urban Redneckon Wed, 05/25/2011 - 04:02
#1308162
The people living in Switzerland are none to happy with this situation either. Switzerland is a country just slightly larger than the state Maryland, with a population smaller than New York City.
There simply isn't the domestic capacity, or even the insanity, to try and absorb all the global bankster's worthless fiat.
The situation is getting so absurd that Hank Johnson's concerns about Guam tipping over and capsizing due to overcrowding actually could come to pass in Switzerland. However, since Switzerland isn't an island- it would suck even more for the countries around Switzerland that get sucked into the vortex and crushed, since they don't have the reserves and tradition of preparation that the Swiss do.
the Swiss franc is like any other fiat currency, NOT backed by gold any longer, hence doomed to take on the same fate as USD,EUR,JPD,Sterling etc. But up to this day it still lives on its merits and the perceived credibikity of the past.
only true storage of value is precious metals, sorry Switzerland!
Those Swiss Franc denominated mortgages in Hungary, Poland etc are one big pile of shit. People never learn...
Weak holders getting out before next leg down
http://deadcatbouncing.blogspot.com/
When Greece defaults, Eurozone exporters will chant "Next is Spain, next is Spain".
slewie ro-cham-bo:
paper = paper
scissors = commodities
rock = PMs
today, we see scissors cutting paper and the rock breaking the scissors, while it takes more and more paper to cover the rock.
eveybody's getting slapped silly!
Since the CHF has been on a vicious bull run against the EUR for years now I'd imagine Swiss exporters have been piling into forward contracts , so this latest dive probably won't affect them too much...until the next batch of contracts has to be negotiated that is .
swiss companies close to the border actually started to pay their EU employees in Euro...some also started to pay their Swiss employees in Euro. Not sure what the implications of this would be if it becomes more common
If I were a Swiss employee I wouldn't be too thrilled with that arrangement .
CHF is being pushed in one direction, and I think it looks a good time to buy some silver against the CHF. But it is only my opinion and I have been wrong before about these things. Still, if the XAG/CHF goes down a little bit, I am gonna place a small bet on it.
Maybe I've missed something but haven't I seen a report on the new high for gold priced in EUR = 1087.
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