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Yawn, Swiss Bank Intervenes Again
Bruce was right. Yet it's one thing to feverishly speculate. Seeing it in action twice in one week is oddly anticlimatic... and getting downright tiresome.
On the other hand the kneejerk reaction in the dollar apparently was not quite a tiresome for gold which lost $6 bucks in the span of a few minutes upon the SNB's taking Bernanke's dollar printing optionality into its own hands.
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The bazookas come out.
Wonder when the music stops and we all start scrambling for a seat?
Part machine, part human, part gold.
snb's?
I was going to reply that I have the same question... then it came to me....
Swiss National Banks, maybe?
Sometimes it's hard to pick up all the abbreviated stuff here. Shit, I didn't even know what an MBS was before.
Signed,
- Flagged as Junk. :)
You may get flagged as junk, but your pet black swan is so cute that you must be forgiven. :-)
Hey thanks! I feed him almost every day! ;p
heh - I just flagged ya as junk so that you would feel at home.
Around here, Flagged As Junk can be a badge of honour - depending on the context!
(also, sometimes it happens by accident. I recently flagged as junk someone I MEANT to reply to. then I was too embarrassed to actually reply or admit it was me. so I just left it there.)
I must admit, I too have flagged people that I meant to reply to, and I'm like ahhh... shit. LOL. Poor fellows.
As to the haters, they wouldn't have a personal grudge if there wasn't some truth to the calls I've been making lately. Such calls haven't been very popular among the "gold bitchez" crowd.
Every dog has its day though and the sun will come out tomorrow for them again. I don't understand the angst though. If some dopey ass kid was consistently right telling me that my assets were about to go up or down, I'd buy him a hamburger! LOL
Anyway, you seem like a nice one, so I'll be sure to catch you around! I'd say have a nice day, but it's night. So... peace!
Yeah peace to you too mate.
I'm most emphatically one of the gold bitches crowd but I can tolerate disagreement. ;-) How we all learn.
It's properly, 'Gold, bitches!' btw...
Always fun to say hi now and then to fellow commentors. It's night here now too, in Sydney, so hope you're prospering in your end of the world, more of a fight than ever these days. Better sign off here or with all the peace & love it'll stop being fight club!
Not to be a third wheel here kids, but if you accidentally flag someone as junk, all you have to do is click on ***JUNK*** to undo the mistake.
I did not know that! Thanks, this will help for the future. (Hand-eye co-ordination isn't what it was...)
SNB's = Swiss National Bank's
Note the apostrophe: the SNB is the (one and only) Swiss National Bank.
Those Swedes, I can smell their fear.
Just imagine the Swiss then :)
Eww, nothing smells worse than a fearful Swede.
Bloody SNB, stop devaluing my currency!
Well, SNB IS only one letter away from SOB! SOB's!!! Fuckers!!! Devalue my currency... I'll show you!
I'm tired, I should go to bed now.
- FAJ
Actually, they were devaluing their currency.
The slow demise of the fiat experiment. Enter stage left, carbon currency.
Nice
USDCHF was a very bullish chart pattern yesterday and it did what I expected.
I'm sure other TA people will agree.
http://www.zerohedge.com/forum/market-outlook-0
Okay, you're right. CHF weakness comes from SNB selling francs.
Big4 short Francs,
FWIY...
http://www.jubileeprosperity.com/
Notice the shakeout that occurred about an hour and a half before the Swiss stepped in. Traders got long at 1.4645 but got stopped out below 1.4625.
Although profitting from another phase of the carry trade unwind, I hear Jim Rogers in my ear telling me to take the other side of whatever cental banks do. If they sell gold, you buy it. If Switzerland is depressing their currency, it's a good time to buy it.
I see this unwind as an opportunity in two ways. First, make a little money on the short side as stuff sells off, then, when the debt implosion has run its course, take the opposite side and scoop up discounted commodities or stocks.
2007-2009 repeat. Deflate, inflate, repeat. The shit hits the fan when its a US dollar and debt crisis. Then its time to seal the bunker.
I'll know its time to cover when Cramer is on the Today show telling people to sell. Last time I saw that was Feb 2009 with the DJIA around 8K.
When will hyperinflation hit in Switzerland? Why is nobody here at ZH talking about this? After all, these guys are printing money like there's no tomorrow, debasing their currency like toilet paper.
Gold will bounce back next week..
You're Trichet. You know that Greece is to Europe what Utah is to the U.S. You are laughing your way to the bank (literally and figuratively). You don't think Sarkozy loves what is happening right now? Go buy a bottle of Bordeaux.
The Europeans are going to play this for all it's worth. They'll stretch it as far as they can.
Are there a lot of Mormons in Greece?
David Serchuk, 01.02.09, 06:00 AM EST
The Forbes.com Investor Team looks for where currencies and commodities could head in 2009Editor's Note: Transcript is from the recently-held annual forecast meeting of the Forbes.com Investor Team.
06:27
Yahoo! BuzzGARY SHILLING:
I mean, my forecast is the dollar is going to strengthen throughout '09 simply as I say more on a safe haven. And you look at the competitive advantages we have. We've got, compared to Europe and the euro zone, I mean, we've got one language. We've got labor mobility. We've got one culture. I think the euro may come into question, because you have such differentials.
06:48
Listening to bloomberg a FT journalist floated the idea of Germany pulling out of the eurozone , leaving the rump Euro to devalue relative to a new stronger deutschmark
Interesting….. things must be coming to a head
Who's bright idea was it to tie 16 nations to one currency?
All this in a region that has had 2 world wars in less than a century, a Germany that 200 years ago was a 300 splintered Germanic speaking states, finally formed one nation a little over a hundred years ago, was the villian in both those world wars, was split down the middle only 2 decades prior ago and so near Mother Russia the ever watchful bear (pun intended) slowly embarking on "Operation: Test Americas Dominance Once Again"
Of course England was smart enough to keep their currency. The moment one nation leaves the Euro its ballgame. The first one to leave will be the strongest and minimizes their risk by doing so.
Why should they support the Euro on their shoulders?They are brilliant minds and hard working industrially oriented culture. Who needs the Euro when France has a 2 hour work week? Of course Trichet is calling for the Fed to raise rates. He cannot have the dollar rising because the Euro looks like a nightmare waiting to happen. I think we can nix any idea of alternative reserve currency.
Reichsmark Part Deux anyone? Oh well its been 60 years since we had a World War and we are about due.
+1 ...not convinced these boys love each other any more than they did 100 years ago, and not sure how immigration affects the mix
Stop reading history and you'll quit worrying about these things.
woo there McCloy , lets not frenchie bash here - Germany has some serious problems too and will not be a significant entity without France as a partner
Even though they are not in love with each other, they are a practical couple and would not be very effective living the single life.
Look out for the Euro splitting in two with a core northern zone with France and Germany as the gravitational centre and a 2nd tier mediterranean area
Why the fuck would a Swiss Treasury want their currency to be expensive. That's the opposite of what most economists would call for - they would want it to be cheaper so that country would export more and import less. It is a slightly mercantilist policy, like what the chinese currently do in order to make their goods that much cheaper.
Again, so why would the Swiss want their currency expensive?
They don't. They are intervening to weaken their currency.
The system as a whole, the system as a hole. Swiss Cheese, Black Hole. Global Margin Call, pre-geopolitical event. Mark time: 2.4.10..... Ready Set....
http://www.youtube.com/watch?v=3nu6XznDP3s
I would say that for the Swiss, this issue of Euro/Frank exchange rate is much more important than the Dollar/Frank rate. Currently it is inder 1.47, and the all time low was 1.44. Switzerland depends a lot more on exports to the EU. For this reason I am sceptical that the SNB is selling franks for dollars, especially since the dollar has risen nicely over the frank in the last month (from $1.01 to $1.07) whereas the Euro has continued falling (1.51 to 1.47)
It is also interesting to note that gold prices have been fluctuating a lot less in frank terms than in $ terms.
I think that what is going on here is the Swiss Frank is caught between a rock (USA) and a hard place (EU).
And in any case, if the SNB were to sell Franks to buy anything, it should be to buy gold to ratchet the Frank down against gold and thus the euro and the dollar. Besides, gold is a helluva better investment that tbills or bunds at this juncture.
I was disapointed in this weak Swiss move. It means nothing at all. When I suggested that intervention may be in the offing I was referring to a global coordinated effort. A big showy splash.
This morning the Swiss CB called the EU CB (and the Fed) and said, "Jeepers, this is killing us. We have to do something, Will you join us, Please? The answer was, "No, your on your own".
The absense of a coordinated effort shows me that that the CB's either don't care or the are scared to move.
Conclusion: The markets have to continue their path of yesterday. They have to continue to punish the CBs untill they respond. The Swiss moves suggests to me that the ramp up when this goes global is not far off. Next week.......
I think you meant anticlimactic.
Rats. I read the top snippet and thought it was global warming/cooling causing super ray guns.
Oh well, currency manipulation is still interesting. Just wait till the central banks outlaw all gold possession even in jewelry. At least with Zimbabwe money you can start a bonfire to keep yourself warm. /sarc
You've got problems in the math problem workflow again.
1) it doesn't like three-character answers when they are needed.
2) I hit Save after the failure and it worked.