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Meanwhile, In Switzerland...

Tyler Durden's picture


While European equities, sovereigns, and corporate credit all seem cock-a-hoop at the tail-risk mitigation efforts of the Draghi 'promise'; demand for the safety of Swiss interest rates has quietly been creeping higher. Swiss 2Y rates are now at almost six-week lows (below -18bps), its lowest since the Draghi 'believe' speech... it seems not everyone 'believes'.



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Mon, 10/15/2012 - 09:58 | 2890242 CPL
CPL's picture

Negative interest rates cometh!


Going to move to switerland to lose my money at a fixed rate year after year.   I find losing money on the market is too quick now.  


I prefer the slow painful death over the quick equities based one.

Mon, 10/15/2012 - 10:03 | 2890258 JPM Hater001
JPM Hater001's picture

No, you move to Switzerland because there is a war coming.

Mon, 10/15/2012 - 10:10 | 2890288 MillionDollarBonus_
MillionDollarBonus_'s picture

This is a sign of things to come in the US treasury market. And don't forget the SNB was forced to peg the EUR/CHF at 1.20 to protect their "export market" (losers) which had a negative effect on Swiss treasuries. Contrast this to America, where we have a consumer economy which benefits from a stronger dollar. Our Federal Reserve has every incentive to allow the continued safe haven buying of US treasuries and US dollars. This means US treasuries are heading not only as high, but much higher than Swiss treasuries.

Mon, 10/15/2012 - 10:24 | 2890328 Frozen IcQb
Frozen IcQb's picture

Every time the USD gets relatively stronger it reduces US labor manufacturing / competitiveness. Moreover, it makes debt repayment more difficult in real terms.



Mon, 10/15/2012 - 12:10 | 2890702 OneTinSoldier66
OneTinSoldier66's picture

"...the SNB was forced to peg the EUR/CHF at 1.20..."


Could you please elucidate/elaborate?


Why was the SNB 'forced' to this peg? How were they 'forced'? And most importantly, who is it that has this 'force' available to them and used it for this purpose?

Mon, 10/15/2012 - 13:19 | 2890972 Mountainview
Mountainview's picture

Therefore the Swiss safers buy now Polish Zloty bonds - stable against EURO (with upside potential) as well and 5% yield....

Mon, 10/15/2012 - 10:25 | 2890333 Genève Barbegazi
Genève Barbegazi's picture



Its part of the building code to have fall out shelters with blast doors in every building.



Mon, 10/15/2012 - 10:38 | 2890390 e-recep
e-recep's picture

i'll move to wherever the jews stash their gold. somehow those countries never get involved in conflict.

Mon, 10/15/2012 - 10:04 | 2890263 LawsofPhysics
LawsofPhysics's picture

Some TIPS have had negative returns for over a year.  - Grandma and grandpa now paying uncle sam to lose their money - "winning"

Mon, 10/15/2012 - 10:18 | 2890267 GetZeeGold
GetZeeGold's picture



Don't know about anyone else....but the Swiss neutral stance is really starting to piss me off.


Mon, 10/15/2012 - 10:19 | 2890318 CPL
CPL's picture



They are going to shit can all their IT.  Means they are gnawing on their own sweet meats in true zombie fashion to save the head.  Also means that there is going to be something very bad happening soon to UBS and it's customers money.


Poof!  and it's gone.

Mon, 10/15/2012 - 09:59 | 2890245 realtick
realtick's picture

Is The Data Better Off Than It Was Five Years Ago?


Mon, 10/15/2012 - 10:00 | 2890251 LawsofPhysics
LawsofPhysics's picture

Swiss Army is already making the necessary preparations.  They have seen this movie before no doubt.

Mon, 10/15/2012 - 10:33 | 2890359 CPL
CPL's picture




No they haven't, they never had so many trade's people with so much time on their hands tearing down infrastructure and historical statues selling them for scrap and the level of theft is off the radar now and being under reported.  I have to read Oman newspapers to find out what's happening in Switerland because guess where their money is...plus


Those mountains that surround the area, historically they were an excellent defensive measure.  However NATO forces have had plenty of training in leveling rocky and unforgiving terrian in Afganistan.  The historical and the cultural stance will cost the entire country and the economy.  All it takes now are remote control toys with bombs straped to them to change a government.


If switerland wanted to properly insulate, itself it would be raising defenses that could possibly repel the annoyance of RC toys.


Morocco I also see as a good point to plunder.  Cash rich.  Big banks.  Excellent liberation point.

Mon, 10/15/2012 - 12:58 | 2890902 LawsofPhysics
LawsofPhysics's picture

Excuse me, I need to close an account.

Mon, 10/15/2012 - 10:06 | 2890254 Dr. Engali
Dr. Engali's picture

 So not only do you have an inflationary loss of principal but you have guaranteed loss  from the onset. The " money managers" sure are earning their 2 and 20.

Mon, 10/15/2012 - 10:01 | 2890255 nope-1004
nope-1004's picture

Phucking ponzi.  Draghi's an impotent mouth piece for the banks.  He produces nothing tangible for this world - just all talk.


Mon, 10/15/2012 - 10:04 | 2890261 EconSammie
EconSammie's picture

I read an interesting post on this last week concerning the consequences of negative interest rates which are currently spreading in Denmark and Switzerland. Will we see the financial sector opening a new carry trade?


I thought that today I would look ahead to something which may not reach the mainstream media for months or years. But negative interest-rates and yields will create anomalies which the finance sector will exploit. I have given the example of banks but I am using them as a generic term as I would expect the shadow banking system to be a major player too here. Also I am discussing what I expect to happen as well as what I am sure some are already doing but keeping quiet about.


A warning for savers


This concept poses quite a few questions. I have asked before what those reading this with savings would do if offered negative interest-rates? I would like to ask readers again for their thoughts.


This matters because peering into my crystal ball I think that it is becoming increasingly likely that we will see negative interest-rates spread


Mon, 10/15/2012 - 10:11 | 2890289 disabledvet
disabledvet's picture

There are no "negative interest rates" in Switzerland dumb ass. Denmark maybe...

Mon, 10/15/2012 - 10:36 | 2890380 CPL
CPL's picture

Add in inflation to it's bank rate and it's -1.2%


You pay to lose 1.2% of your money's value.  In Swiss francs...which aren't back by silver anymore.  There is no hedge in the Swiss system anymore thanks to the ECB and the other fucktards in Europe.


Mon, 10/15/2012 - 10:06 | 2890271 disabledvet
disabledvet's picture

Commenters sure picking up their game. Thank God that Swiss debt is priced in euros!

Mon, 10/15/2012 - 10:19 | 2890319 fbrothers
fbrothers's picture

More Nazis' and Nazi money in Switzerland, than Germany, at the end of the war. They let the Nazis use their rail line to carry people to the concentration camps. No one is neutral. Holland was neutral, but Germany invaded them anyway. 


Mon, 10/15/2012 - 11:17 | 2890535 otto skorzeny
otto skorzeny's picture

I see you believe all of the Jew propaganda perpetrated by the yid-owned MSM to continue the shakedown of the Swiss. Now it's back to CNN for you for more indoctrination.

Mon, 10/15/2012 - 15:33 | 2891681 Mountainview
Mountainview's picture

Most of the money out of Nazi-Germany was actually Jewish and the banking secret helped to protect it...

Mon, 10/15/2012 - 10:28 | 2890350 the watchers
the watchers's picture

and the plot thickens lol

Mon, 10/15/2012 - 12:21 | 2890764 Dareconomics
Dareconomics's picture

Swiss army prepares for euro zone unrest - World News.

Switzerland is quite literally and figuratively in the middle of Europe. It is surrounded by the eurozone.

The country has been the recipient of billions of euros of deposits over the last two years as rich Europeans hedge their bets on a currency breakup. Only Switzerland knows the true extent of eurozone woes through the increasing cross-border currency flows.

What does it believe? Well, it has begun preparing its army for a possible euro meltdown. Troops are engaging in training exercises to seal the border from refugees and to maintain civil order in the case of a financial crisis.

The Swiss are doing their part to contribute to the eurocrisis. The SNB has established a floor on the value of the euro versus the Swiss franc and is spending gobs of francs to defend the floor. This action has helped to maintain the high value of the euro, which is hurting the countries that desperately require a competitive devaluation.

Keep those troops ready, William Tell.


Mon, 10/15/2012 - 14:21 | 2890793 OneTinSoldier66
OneTinSoldier66's picture

"competitive devaluation"


That sure is a couple of words that are contradictory when combined.

Mon, 10/15/2012 - 18:56 | 2892430 schadenfreude
schadenfreude's picture

Your war fearmongering is bs. Stop drawing stupid conclusions out of your arse.

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