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"It's Carnage" - Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds Crushed

Tyler Durden's picture




 

"As if millions of macro hedge funds suddenly cried out in terror and were suddenly silenced"

Over two decades ago, George Soros took on the Bank of England, and won. Just before lunch local time, the Swiss National Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit its all time nominal high, was no more.

What happened next was truly shock and awe as algo after algo saw their EURCHF 1.1999 stops hit, and moments thereafter the EURCHF pair crashed to less then 0.75, margining out virtually every single long EURCHF position, before finally rebounding to a level just above 1.00, which is where it was trading just before the SNB instituted the currency floor over three years ago.

Visually:

The SNB press release:

Swiss National Bank discontinues minimum exchange rate and lowers interest rate to –0.75%

 

Target range moved further into negative territory

 

The Swiss National Bank (SNB) is discontinuing the minimum exchange rate of CHF 1.20 per euro. At the same time, it is lowering the interest rate on sight deposit account balances that exceed a given exemption threshold by 0.5 percentage points, to ?0.75%. It is moving the target range for the three-month Libor further into negative territory, to between –1.25% and -0.25%, from the current range of between -0.75% and 0.25%.

 

The minimum exchange rate was introduced during a period of exceptional overvaluation of the Swiss franc and an extremely high level of uncertainty on the financial markets. This exceptional and temporary measure protected the Swiss economy from serious harm. While the Swiss franc is still high, the overvaluation has decreased as a whole since the introduction of the minimum exchange rate. The economy was able to take advantage of this phase to adjust to the new situation.

 

Recently, divergences between the monetary policies of the major currency areas have increased significantly – a trend that is likely to become even more pronounced. The euro has depreciated considerably against the US dollar and this, in turn, has caused the Swiss franc to weaken against the US dollar. In these circumstances, the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified.

 

The SNB is lowering interest rates significantly to ensure that the discontinuation of the minimum exchange rate does not lead to an inappropriate tightening of monetary conditions. The SNB will continue to take account of the exchange rate situation in formulating its monetary policy in future. If necessary, it will therefore remain active in the foreign exchange market to influence monetary conditions.

The resultant move across all currency pairs has seen the EUR and USD sliding, the USDJPY crashing, and US futures tumbling even as European stocks plunged only to kneejerk higher as markets are in clear turmoil and nobody knows just what is going on right now.

In other asset classes, Treasury yields, understandably plunged across the entire world, and the entire Swiss bond curve left of the 10 Year is now negative, with the On The Run itself threatening to go negative soon as can be seen on the table below:

Crude and other commodities, except gold, are also tumbling, as are most risk assets over concerns what today's epic margin call will mean when the closing bell arrives.

An immediate, and amusing, soundbite came from the CEO of Swatch Nick Hayek who said that "words fail me" at the SNB action: "Today's SNB action is a tsunami for the export industry and for tourism, and finally for the entire country." More from Reuters:

Swatch Group UHR.VX Chief Executive Nick Hayek called the Swiss National Bank's decision to discontinue the minimum exchange rate on the Swiss franc a "tsunami" for the Alpine country and its economy.

 

"Words fail me! Jordan is not only the name of the SNB president, but also of a river… and today's SNB action is a tsunami; for the export industry and for tourism, and finally for the entire country," Hayek said in an emailed statement on Thursday.

 

Swiss watchmakers, which are also grappling with weak demand in Asia, are very exposed to moves in the Swiss franc exchange rate because their production costs are largely in Swiss francs, but most of their sales are done abroad.

 

Shares in Swatch Group fell 15 percent at 1056 GMT, while Richemont CFR.VX was down 14 percent, underperforming a 9 percent drop in the Swiss market index .SSMI following the SNB's announcement. 

 

"Absolutely shocking ... For companies with international operations – translated earnings are going to be lower and if companies make products in Switzerland it is going to hurt margin. It is a terrible day for corporate Switzerland," Kepler Cheuvreux analyst Jon Cox said

Indeed, in retrospect, it does seem foolhardy that the SNB, whose balance sheet ballooned to record proportions just to defends it currency for over three years would give up so easily. The one silver lining, so to say, is that gold prices in CHF just crashed by some 13%.

Some more soundbites from strategists, none of whom foresaw this stunning move:

ALEXANDRE BARADEZ, CHIEF MARKET ANALYST AT IG FRANCE

 

"This is extremely violent and totally unexpected, the central bank didn't prepare the market for it. It's sparking panic across all asset classes. It suddenly revives the risk of central bank policy mistakes, right when central bank action is what's keeping equity markets going."

LEX VAN DAM, HAMPSTEAD CAPITAL LLP HEDGE FUND MANAGER:

 

"Major losses in euro-franc trades are causing panic selling and deleveraging across the board."

CHRIS BEAUCHAMP, MARKET ANALYST AT IG

 

"My initial reaction was that it is a sign the ECB is about to do something, which makes it odd that the reaction has been so negative across European stocks. However, it's not every day that a central bank pulls the rug out from underneath something in such a massive way, and clearly people are worried that there's something bigger afoot. This kind of event is the kind of thing that will trigger volatility. This is not a one day thing now."

DARREN COURTNEY-COOK, HEAD OF TRADING AT CENTRAL MARKETS INVESTMENT MANAGEMENT

 

"They’ve stopped defending the 1.20 floor. It’s carnage."

PATRICK JACQ, RATE STRATEGIST, BNP PARIBAS, PARIS

 

"The decision of the SNB means it no longer needs to buy euro-denominated paper in order to defend the 1.20 position. This should normally weigh on European debt but the SNB also said they will continue to monitor in order to prevent the exchange rate from rising substantially.

 

"This means that at the end of the day even if they don't defend the 1.20 level, if they want to prevent a collapse of the euro versus the Swiss franc they will probably have to keep on buying, maybe at a lesser extent, euro denominated paper." 

 

JONATHAN WEBB, HEAD OF FX STRATEGY AT JEFFERIES, LONDON

 

"It has taken the market by complete surprise. The SNB probably expects the ECB to launch QE next week and along with the Greek elections coming up, it would make it pretty tough on the Swiss to keep bidding the euro.

 

So they have abandoned the cap and cut rates deeper into negative territory. We expect euro/Swiss to trade around 0.90-1.00 francs after all the stop loss orders have been cleared"

 

GEOFFREY YU, CURRENCY STRATEGIST AT UBS IN LONDON:

 

"They think too much money is going to come in, especially with QE coming, and so they think they need a 'Plan B'."

"Let it run, let it settle, and we'll see what happens next."

However, the best soundbites today will surely come from US hedge funds which are just waking up to the biggest FX shocker in years, and of course, any retail investors who may have been long the EURCHF, and who are not only facing epic margin calls, but are unable to cover their positions, as one after another retail FX brokerage has commenced "Rubling" the Swissy and the CHF pair is suddenly not available for trading for retail accounts.

To say that today will be interesting, is an understatement.

 

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Thu, 01/15/2015 - 09:09 | 5664262 Smuckers
Smuckers's picture

It is refreshing to see a flash crash and reversal in something other than silver for a change.

I envision a Muppet scene where the Swedish chef yells "Bork! Bork! Bork!" while the two old cronies vomit from the balcony.

(Pity not a Swiss chef - but the image still works for me.)

 

Thu, 01/15/2015 - 09:10 | 5664272 Q-Q-Q
Q-Q-Q's picture

You mean you can't trust central banks to watch your back...............I'm shocked :-0

Thu, 01/15/2015 - 09:12 | 5664277 NoWayJose
NoWayJose's picture

Good morning stack, you are shining even brighter today...

Good morning SNB, now we know why you fought that gold referendum so hard...

Thu, 01/15/2015 - 09:56 | 5664448 highcapacity
highcapacity's picture

Swiss Gold Shop offline  http://www.geiger-edelmetalle.ch/offline.htm

its too late bitcheeez

Thu, 01/15/2015 - 09:15 | 5664285 djsmps
djsmps's picture

On CBS News this morning, they just ended a piece telling us how great the economy is.

Thu, 01/15/2015 - 09:18 | 5664295 Old Poor Richard
Old Poor Richard's picture

Angry insiders are spitting mad they didn't get the usual backdoor hint that something was in the works, so they couldn't position themselves to profit unfairly from it.  This sort of action is just what's needed by central banks to make moves (whether the moves are actually wise or not is immaterial) without giving any warning, in order to prevent front-running.  The slow motion meltdown of Leman is what allowed "the market" inform politicians of their displeasure in not being bouyed with government welfare, giving them the power to punish and coerce the treasury.  Preparing the markets is a euphemism for tipping off cronies.

Thu, 01/15/2015 - 09:19 | 5664301 teuffy
teuffy's picture

It is just a matter of time before the head of SNB resign. He is not reliable any more as his predecesor was with the leak regarding the peg at 1.20. The logic regarding the action of the central bank toward the economy, the investors, small busnesses has to be explained.

Thu, 01/15/2015 - 09:26 | 5664325 Vooter
Vooter's picture

"Words fail me"...LOL! Well, hey, here's a loaded revolver--put it in your mouth and pull the trigger. See if that fails you...

Thu, 01/15/2015 - 09:33 | 5664349 Never One Roach
Never One Roach's picture

"If you want to keep your carnage, you can keep your carnage."

Thu, 01/15/2015 - 11:29 | 5664952 litemine
litemine's picture

Could be the start of "BLOOD in the Street" Is there some BIG Astrological Happening ? 

Thu, 01/15/2015 - 14:10 | 5665705 Heavy
Heavy's picture

"It suddenly revives the risk of central bank policy mistakes, right when central bank action is what's keeping equity markets going."  It's Zombie time Bitchez.

Thu, 01/15/2015 - 09:34 | 5664353 silverer
silverer's picture

The Swiss are quite a case. "Gee, we have the most solid banking system in the world, low to zero inflation, and our citizens enjoy our strong currency."  This was just a few years back.  The solution?  "Gee, our currency is too strong relative to everyone else, lets devalue it and dump gold while we're at it".  Now it gets better: Money is actually the representation of labor hours.  Now we have friggin' NEGATIVE values attributed to labor?  The concept is insane.  It's like doing surgery on your dog to make it fit the dog house.  The only reason this whole broken banking system is working is just plain old inertia.  Imagine starting out a new system using the same rules as now.  Negative interest?  Really?  OK folks, lets start out by having you put all your money in a bank, where we take it and make it worth less immediately.  And if it doesn't work quite the way we planned, we'll make it worth even less.  What a great idea?  WTF?

Thu, 01/15/2015 - 09:53 | 5664427 Eagle Keeper
Eagle Keeper's picture

Sounds like what happens when you buy a new car....

Thu, 01/15/2015 - 09:55 | 5664442 css1971
css1971's picture

It's a Mexican stand off. Give me your money or your money gets it.

It's what comes of hiring the fox to guard the hen house.

 

I've taken almost everything out of the banks. Stuck it in a safe in various forms.

Thu, 01/15/2015 - 09:40 | 5664370 NoWayJose
NoWayJose's picture

The FBI and CIA have solid evidence that this was caused by a combination of ISIS, Putin, and North Korea!

Thu, 01/15/2015 - 09:43 | 5664376 Last of the Mid...
Last of the Middle Class's picture

"It's Carnage". Umm, no, carnage would be bankers swinging from lamp posts. Amazing how the first sentence tells you how to feel, and thus your point of view. ESAD bankers!

Thu, 01/15/2015 - 09:47 | 5664399 constantine
constantine's picture

Time for Martin Armstrong to tell us how his C3PO computer predicted this depeging of the Euro from the CHF 30 years ago while it was communicating with other life forms located in a solar system around the Alpha Centauri star.

Thu, 01/15/2015 - 13:11 | 5665423 Livermore Legend
Livermore Legend's picture

Indeed......

Thu, 01/15/2015 - 09:49 | 5664407 Racer
Racer's picture

The opposite of carnage in 'markets' going on right now

Thu, 01/15/2015 - 09:54 | 5664428 damicol
damicol's picture

 The Swiss with the encouragement of the Germans decided to kick draggy the druggy bastard right in the nollock

Thu, 01/15/2015 - 09:54 | 5664439 Last of the Mid...
Last of the Middle Class's picture

Perhaps the swiss just decided to take their hit early and get on with it.

 

Thu, 01/15/2015 - 09:56 | 5664440 Racer
Racer's picture

4m4 minutes ago

"The minimum exchange rate must remain the cornerstone of our monetary policy," SNB's Jean-Pierre Danthine, January 12, 2015"

 

Proof positive, if you really needed it, that you can't trust a single word a bankster utters!

Thu, 01/15/2015 - 09:59 | 5664460 Downtoolong
Downtoolong's picture

Another example of the HFT algo liquidity argument being bullshit.

"Liquidity, liquidity everywhere, and not a drop to trade".

 It exists only for the chosen few. Always there when you don't need it, and never when you do.

Thu, 01/15/2015 - 10:04 | 5664482 madcows
madcows's picture

S&P and DOW futures currently at +0.3%.  So, no carnage.... GROWTH.

Are these the BTFDers or the FED PUT/more QE folks.  BOTH.

Thu, 01/15/2015 - 10:07 | 5664495 Armed Resistance
Armed Resistance's picture

The over/under on market "breaks" today is 2.5 @ -115

Place your bets!
There's a black swan swimming in my jacuzzi. Is that an omen?

Thu, 01/15/2015 - 10:11 | 5664516 Jethro
Jethro's picture

Well, with that kind of hedge fund action, somebody in the Hamptons is getting the riding crop hard tonight.

Thu, 01/15/2015 - 10:14 | 5664532 NubianSundance
NubianSundance's picture

I thought Carnage was the governor of the BofE

Thu, 01/15/2015 - 10:18 | 5664558 Itch
Itch's picture

By fucking George, that was hardcore.

Thu, 01/15/2015 - 10:21 | 5664569 esum
esum's picture

neva answer a MARGIN call.....

Thu, 01/15/2015 - 10:22 | 5664595 lakecity55
lakecity55's picture

The Swiss are meticulous.

Something is coming and they saw it first.

Thu, 01/15/2015 - 10:35 | 5664671 Bangalore Torpedo
Bangalore Torpedo's picture

The Swiss unpegged their currency from gold back in the 90's...they are just as stupid as the other Europeans.  High marks on yodeling though.

Thu, 01/15/2015 - 10:32 | 5664653 wstrub
Thu, 01/15/2015 - 10:34 | 5664658 Bangalore Torpedo
Bangalore Torpedo's picture

One little shitty country in the middle of Europe unpegs their crappy fiat currency from another shitty fiat currency and "carnage ensues".

Give me a friggen break.  Stack this on on the "10 great over-reactions of 2015" pile.

Thu, 01/15/2015 - 11:22 | 5664919 Vooter
Vooter's picture

Referring to nations as "little" and "shitty" is exactly what set the stage for the long, slow collapse of the United States that we're witnessing today, you moron. Enjoy!

Thu, 01/15/2015 - 12:18 | 5665152 Tursas
Tursas's picture

Exactly!

Thu, 01/15/2015 - 10:34 | 5664659 Son of Captain Nemo
Son of Captain Nemo's picture

Like gasoline on an already monolithic forrest fire...

Anybody happen to watch GLD at the same time the markets opened in Manhattan?....

This is looking like a very interesting day indeed!

Thu, 01/15/2015 - 10:33 | 5664662 orangegeek
orangegeek's picture

Another day another push to deleveraging.

 

Only the beginning.

Thu, 01/15/2015 - 10:35 | 5664674 LawsofPhysics
LawsofPhysics's picture

Sorry, I don't think people define "carnage" the same way I do.

Thu, 01/15/2015 - 10:38 | 5664692 Bangalore Torpedo
Bangalore Torpedo's picture

If the key word here is carnage, then what word will be used WHEN the Chinks unpeg the yuan from king Dollah?

Thu, 01/15/2015 - 11:13 | 5664869 LawsofPhysics
LawsofPhysics's picture

Armageddon?

Thu, 01/15/2015 - 13:06 | 5665409 Livermore Legend
Livermore Legend's picture

"Suicide".......

Thu, 01/15/2015 - 13:07 | 5665413 overmedicatedun...
overmedicatedundersexed's picture

FXF, is up as expected but look at the volume..100x normal volume..somebody has to cover,

Thu, 01/15/2015 - 10:38 | 5664686 yogibear
yogibear's picture

And the Federal Reserve will never raise rates until the US dollar keeps free-falling.

QE 4 is assured. Then it's insane money printing/QEing to infinity.

Wait until overseas investors figure that one out.

 

Thu, 01/15/2015 - 10:37 | 5664689 Ikea nesting in...
Ikea nesting instinct's picture

From UBS:

"We expect the direct effect on the SNB balance sheet of a EURCHF
exchange rate drop from 1.20 to approximately 1.00 to be in the order
of CHF 40-50bn. At the same time, Swiss CPI inflation could be affected
by as much as -0.9% m/m. The direct effect on Swiss goods exporters is
estimated to be about CHF 5bn (-0.7% of Swiss GDP)."

 

Thu, 01/15/2015 - 12:39 | 5665275 combatsnoopy
combatsnoopy's picture

In my current textbook international finance class, ch. 3 in the International Monetary System chapter in practice 2 goes over this. 

"The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss

economy and carries the risk of a deflationary development.

The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained

weakening of the Swiss franc. With immediate effect, it will no longer tolerate a EUR/CHF

exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum

rate with the utmost determination and is prepared to buy foreign currency in unlimited

quantities.

Even at a rate of CHF 1.20 per euro, the Swiss franc is still high and SHOULD CONTINUE TO

WEAKEN OVER TIME. If the economic outlook and deflationary risks so require, the SNB will

 

take further measures."  http://www.snb.ch/en/mmr/reference/pre_20110906/source/pre_20110906.en.p...

Thu, 01/15/2015 - 10:43 | 5664720 a common man
a common man's picture

Margin calls are being delivered by Black Swans.

Thu, 01/15/2015 - 10:44 | 5664724 Big Brother
Big Brother's picture

EURCHF - 1.14.2015 - 61 Longs per Short on FXCM.

EURCHF - 1.15.2015 - 12 Longs per Short on FXCM.

... amazing.

Thu, 01/15/2015 - 10:47 | 5664736 chinaboy
chinaboy's picture

Peak central bank.

Thu, 01/15/2015 - 10:51 | 5664755 chomu
chomu's picture

Awwww the poor hedgies just saw their Davos cost skyrocket. That lift ticket and G550 fillup is gonna hit them hard...,.

Thu, 01/15/2015 - 10:51 | 5664762 franzpick
franzpick's picture

THE DANCE MACABRE OF THE CURRENCIES HAS BEGUN.

Thu, 01/15/2015 - 10:52 | 5664763 vegas
vegas's picture

Exit Question: "How many bimbos, girlfriends, mistresses, boyfriends [whatever], and other various insiders at the SNB got the word before the rest of the world did and sold EURCHF through offshore accounts today?"

Valentine's Day is less than a month away; would love to track Benz sales in Zurich the next few days. But wait ... oh yea, I forgot, this stuff never happens and the porn-watching regulators are on the case.WTF.

 

www.traderzoo.mobi

Thu, 01/15/2015 - 10:53 | 5664766 wstrub
Thu, 01/15/2015 - 10:58 | 5664782 Batman11
Batman11's picture

Coming from the UK, I hope George Soros got fried.

I still remember that day, everyone listening to the radio at work (before the internet had really taken off).

Thinking about our new mortgage payments as interest rates rose by the hour (variable rates in the UK).

 

 

Thu, 01/15/2015 - 14:48 | 5665895 Escapedgoat
Escapedgoat's picture

Lost 40% odd from some investments that fucking day.

I did not have a mortgage at the time or since. Cash only.

Thu, 01/15/2015 - 11:00 | 5664797 GotNuttin'todo
GotNuttin'todo's picture

Big time kudos to zerohedge for posting this article on Sunday I believe. The market might have been surprized by the Swiss move, but ZH wasn't.

http://www.nzz.ch/nzzas/nzz-am-sonntag/euro-mindestkurs-snb-ernst-balten...

Thu, 01/15/2015 - 11:04 | 5664801 numapepi
numapepi's picture

Gambling is gambling... whether it is in the FX market, the stock market or the casino.

Thu, 01/15/2015 - 11:02 | 5664812 Eyeroller
Eyeroller's picture

Who could have seen that coming? Bwah-ha-ha-ha!

Thu, 01/15/2015 - 11:03 | 5664819 numapepi
numapepi's picture

Here is the pull quote from this article...

"It suddenly revives the risk of central bank policy mistakes, right when central bank action is what's keeping equity markets going." LEX VAN DAM, HAMPSTEAD CAPITAL LLP HEDGE FUND MANAGER:

I guess great distress will make even a bankster tell the truth... Even if inadvertently.

Thu, 01/15/2015 - 11:11 | 5664845 mraptor
mraptor's picture

- We cannot withdraw gold from NY, because this will impede our ability to defend 1.20 peg  /Swiss bank

- Rii...iii...ght !?!?!   /sarc

 

Thu, 01/15/2015 - 11:14 | 5664878 Youri Carma
Youri Carma's picture

So the holes in my Swiss cheese will get even more expensive.

Thu, 01/15/2015 - 11:17 | 5664896 22winmag
22winmag's picture

This seems like prime time to go polish those 1920s and 1930s Gold Francs delievered to me by Merit before they got shut down.

Thu, 01/15/2015 - 11:21 | 5664927 Smiddywesson
Smiddywesson's picture

Who woulda thunk it, cocaine sniffing 30 something perma bull fund managers DON'T know WFT they are doing and are just gambling with your money.

 

Anybody with so much money in one trade that they can be broken is NOT a trader, he's a gambler. 

 

If you are busted, you have my sympathy for acting the fool, but before you blame the SNB, look in the mirror.  There are thousands of markets to trade, you lost all your money because you thought you knew something.  Rule #1 of a trader, you don't know nothing, so you play defense.

Thu, 01/15/2015 - 13:03 | 5665391 Livermore Legend
Livermore Legend's picture

"........perma bull fund managers DON'T know WFT they are doing and are just gambling with your money......

......Anybody with so much money in one trade that they can be broken is NOT a Trader, he's a Gambler......

......before you blame the SNB, look in the mirror......"

Indeed, Exactly Right.....

 

Thu, 01/15/2015 - 13:13 | 5665441 Latitude25
Latitude25's picture

Those gamblers are the guys playing with the easy 401k and IRA money of the average corporate/.gov employee.

Thu, 01/15/2015 - 11:21 | 5664928 Batman11
Batman11's picture

I better dig out my book the "Death of Money".

I am sure one of his predictions for the end of days was chronic instability/volatility.

Crude, Venezuela, Russia, Ruble, the Middle East, China teetering, Japan desperate, the Euro shambles, US stock market at 1929 highs .....

Even the boring Swiss have become unstable.

The end is nigh.

 

Thu, 01/15/2015 - 11:22 | 5664932 Batman11
Batman11's picture

Buy gold, though what good this is going to do in the radio-active wasteland left after the US/Russia war over the Ukraine I have no idea.

What does it taste like?

 

Thu, 01/15/2015 - 15:19 | 5666046 RichardENixon
RichardENixon's picture

Chicken

Thu, 01/15/2015 - 11:26 | 5664943 litemine
litemine's picture

With this, some could call it a movement, could turn into diarrhea. Not enough cash in the street, to cover even 100th of the DEBT?

Thu, 01/15/2015 - 11:34 | 5664980 AynRandFan
AynRandFan's picture

So much for paying back debt with inflated USD's.

Thu, 01/15/2015 - 12:06 | 5665092 Uncle Remus
Uncle Remus's picture

I read "Not enough cash in the street, to cover even 100th of the EBT?"

Thu, 01/15/2015 - 12:14 | 5665124 litemine
litemine's picture

DEBT...

Don't understand "EBT"

Thu, 01/15/2015 - 14:18 | 5665748 Uncle Remus
Uncle Remus's picture

Yeah, me either.

Thu, 01/15/2015 - 17:38 | 5666755 tarabel
tarabel's picture

 

 

E lectronic B enefits T ransfer (card).

You're welcome, no problem.

Thu, 01/15/2015 - 19:44 | 5667475 Uncle Remus
Uncle Remus's picture

Yeah, sarcasm loses a little something in translation.

Thu, 01/15/2015 - 11:35 | 5664973 AynRandFan
AynRandFan's picture

USD positive

Emerging market negative

Why do we need banks that charge to keep money and don't make loans?

Thu, 01/15/2015 - 11:53 | 5665042 NoTTD
NoTTD's picture

Next peg to go:  HKD/USD.

 

You heard it here first, so make a note.

Thu, 01/15/2015 - 11:54 | 5665045 lesterbegood
lesterbegood's picture

Does this mean we can expect the retirement of more banksters?

I heard nailguns are on sale at Home Depot on aisle 6.

Thu, 01/15/2015 - 12:11 | 5665109 Tursas
Tursas's picture

Not yet. But watch this German language UTube video and discover the hidden part of it all...

http://t.co/ZX3IDLVVPN

Thu, 01/15/2015 - 12:03 | 5665085 Uncle Remus
Uncle Remus's picture

I am pretty sure I hear maniacal laughter coming from my safe...

Thu, 01/15/2015 - 12:06 | 5665095 yogibear
yogibear's picture

Oh the pain in the dervatives market.

LOL, It smoked a few people.

Thu, 01/15/2015 - 12:07 | 5665103 Badself
Badself's picture

It is not carnage if you are invested in the DAX....  Investors are smarter than you think and realize that if equities loose 90% today it is still worth more than worthless cash.  10% of something is worth more than 100% of nothing..  just something to ponder as everyone is running from equities..

Thu, 01/15/2015 - 12:15 | 5665135 q99x2
q99x2's picture

Wish I had some of those Swiss Francs now bitchez. Gold at a 13% discount.

Thu, 01/15/2015 - 15:55 | 5666233 Uncle Remus
Uncle Remus's picture

Yep just have to look for the silver lining - oh wait...

Thu, 01/15/2015 - 12:23 | 5665175 joego1
joego1's picture

You may now settle your gas bill with Russia in Francs

Thu, 01/15/2015 - 12:23 | 5665181 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

2015 has so far been everything I wished for and more, it's going to be an amazing year for ZH'ers, it's going to be a very hard year fore those who still believe in the official propaganda and rehtoric. This could be a very very bad year for sheep. 

Thu, 01/15/2015 - 12:26 | 5665195 combatsnoopy
combatsnoopy's picture

The almighty question is WHERE IS RUSSIA STORING THEIR WEALTH?   

 :)  

Rumor has it that it's in Switzerland.   If so, well played Putin.  Well played.  

Thu, 01/15/2015 - 15:09 | 5665990 PontifexMaximus
PontifexMaximus's picture

Where did u get this (non) rumor?

Thu, 01/15/2015 - 12:41 | 5665267 RadioactiveRant
RadioactiveRant's picture

Margin calls Friday, long weekend of conference calls for the worlds largest banks, green on Monday.

Thu, 01/15/2015 - 12:46 | 5665306 El Hosel
El Hosel's picture

Thats seem like a good way to get kicked out of the club.

Thu, 01/15/2015 - 12:46 | 5665308 AnarcOmAN@
AnarcOmAN@'s picture

HMM...Look for wall street to take a massive paper shit in the futures market. I sense the shorting of gold will be afoot 

Thu, 01/15/2015 - 12:46 | 5665310 observer007
observer007's picture

EURO Dollar 1:1?

 

latest on Euro-Crash:

http://tersee.com/#!q=euro&t=text

Thu, 01/15/2015 - 12:46 | 5665314 Salzburg1756
Salzburg1756's picture

"Carnage" of course in the good sense of the term.

Thu, 01/15/2015 - 12:51 | 5665334 Manipuflation
Manipuflation's picture

It is scary that I woke up this morning and started thinking about Switzerland.  I hadn't read or heard any news yet.  I have no idea why I thought of that nation.  I don't trade FOREX.  But I started wondering what I had that was made in Switzerland.  I couldn't think of anything that I could afford that is made in Switzerland but then I remembered that I might have a gold Helvetia so I checked and sure enough I do.  From a numismatic perspective it is a common coin but it is still gold.  I don't remember how I acquired it exactly but it was back around those Gordon Brown dump Britian's gold days.  Remember that asshole?  Yeah, I have an idea, I will announce the sale of the national gold reserves BEFORE I sell it.  What the fuck?  Fucking eh, there was a lot of European gold on the market for dirt cheap but I couldn't buy it all because I ran out of fiats.  No doubt many of you did buy as well and it is in better hands now.

Given the history of Switzerland, what are the Swiss doing now?  This is dumb.  Why would anyone buy a Swiss bond with a negative yield?  What the hell happened to the Swiss?  Did someone poison the water supply with stupid juice?      

Thu, 01/15/2015 - 13:00 | 5665381 AnarcOmAN@
AnarcOmAN@'s picture

No, this is probably at the behest of the ECB. I think your seeing a gearing up for another round of QE via ECB. I don't think anyone in a national bank or central bank gives a fuck about anyone. The real question is, how the fuck am I going to get some goddamn Swiss chocolate? 

Thu, 01/15/2015 - 13:00 | 5665382 AnarcOmAN@
AnarcOmAN@'s picture

No, this is probably at the behest of the ECB. I think your seeing a gearing up for another round of QE via ECB. I don't think anyone in a national bank or central bank gives a fuck about anyone. The real question is, how the fuck am I going to get some goddamn Swiss chocolate? 

Thu, 01/15/2015 - 13:30 | 5665507 nowhereman
nowhereman's picture

They just realized that they will need to burn all those stashed Euros to heat their homes now that the gas has been shut off.

Thu, 01/15/2015 - 13:37 | 5665377 malek
malek's picture

Muaaaaahahahaha!
Show us your exit strategy!!!

(I'm not laughing at today's actions of the SNB, I'm laughing at them ever starting the EURCHF floor!)

 

"Words fail me! […] today's SNB action is a tsunami; for the export industry and for tourism, and finally for the entire country," Hayek said in an emailed statement on Thursday.

So you didn't hedge against such risks, because the SNB was supposed to be your hedge? Suckers!!

Thu, 01/15/2015 - 12:59 | 5665379 mijev
mijev's picture

I guess this is one way to increase the minimum wage in Switzerland.

Thu, 01/15/2015 - 13:24 | 5665487 Jim in MN
Jim in MN's picture

How quaint, to do all in their power to rob and screw the middle class and working people in the 'developed' world.....and then be shocked and scared at deflationary pressure.

 

NOBODY KNOWS NUTTIN'  --The Elite Stooge Chorus

Thu, 01/15/2015 - 14:55 | 5665925 swiss chick
swiss chick's picture

That's exactly what I thought...

Thu, 01/15/2015 - 13:31 | 5665511 Fractal Parasite
Fractal Parasite's picture

Jim Willie wrote this in February 2014:

"The Langley Boyz are stuffing numerous big Swiss houses (the typical upscale mansions, of medium and large size) with palettes of shrink wrapped Swiss Franc bills. All pegs fail under pressure, since momentum builds. When it does, expect a ripe 30% push upward in the SWFranc and possibly higher in an overshoot."

EuroRaj in November 2014:

"The Swiss Franc to Euro currency peg is about to break down in a very visible manner, which runs a strong risk of bringing down the FOREX derivative complex. The Swiss National Bank will be forced to permit the Franc a strong rise. The fallout could even wreck the Interest Rate Swap derivative complex. The Swiss National Bank is bust for all practical purposes, its gold sales and Euro peg to cause a calamity. It will probably be forced to raise the value of gold on its balance sheet and to conduct massive accounting work on the FX/IRS liabilities."

Thu, 01/15/2015 - 15:19 | 5666049 juicemoney
juicemoney's picture

It looks like this month's Hat Trick Letter may be delayed a couple days... going to be some interesting commentary this time.

Thu, 01/15/2015 - 13:41 | 5665558 surrational
surrational's picture

Woke up to 500% profit. LOL. Went short the USD/CHF overnight :)

Thu, 01/15/2015 - 14:30 | 5665830 hooligan2009
hooligan2009's picture

no gloating! but feel free to take the 2 and 20 fallout funds from the fall-out on the other side!

Thu, 01/15/2015 - 13:41 | 5665567 Sizzurp
Sizzurp's picture

Are the words "counterparty risk" about to rear their head again.  The derivative chain doesn't like sudden change like this especially in a crowded trade like EUR/CHF.  We shall see. Maybe not now, but sometime in the near future there will be another Lehman moment.

Thu, 01/15/2015 - 13:45 | 5665593 fed_depression
fed_depression's picture

This was ECB's backdoor QE because Germany wouldn't let them print. It was a great way to debase Euro without printing a single bill.

 I don't think they thought the Swiss franc would move so much.

Thu, 01/15/2015 - 19:20 | 5667360 bid the soldier...
bid the soldiers shoot's picture

but, but

It was a great way to debase Euro without printing a single bill.

Yet $5 to $10 trillion of QE not only didn't debase the USD, it made it reach heights not seen for a dozen years.

And the poor Chinese

With $2 trillion in dollar reserves to sell while the dollar just keeps increasing in value.

"Toto, I've a feeling we're not in Kansas anymore."

Thu, 01/15/2015 - 14:25 | 5665790 Jack Burton
Jack Burton's picture

"All Swiss government bill and bond yields out to 7 years are negative"

And western Europe says it is the bastion of growth and capitalism. While they take anyone trying to save money and openly steal it, forcing all who hate theft to gamble in stock markets, markets that all evidence shows are totally manipulated, and insider trading is the norm not an illegal act.

Who in their right mind 20 years ago would have stood by and listened to someone say that in 20 years time the banks would charge you .75% fee for keeping YOUR money for you! They would have called you insane, the land of freedom, deomcracy, capitalism and the freest markets on earth could never openly STEAL savers money. Fuck Yes they can!

Thu, 01/15/2015 - 15:01 | 5665952 JR
JR's picture

For the bankers to achieve a sociaist one-world system which they will control they need to eliminate the middle classes of Wesetern Europe, Japan and the United States. Good analysis, Jack.

Thu, 01/15/2015 - 18:56 | 5667164 Radical Marijuana
Radical Marijuana's picture

Indeed, JR, as you mentioned "Japan," I repeat the link to this video that was recently featured on Zero Hedge:

http://www.youtube.com/watch?v=p5Ac7ap_MAY

Princes of the Yen:

Central Banks and the Transformation of the Economy

An hour & a half long documentary about the monetary system in Japan since WWII, with some conclusions comparing that history to other central bank behavior: INSIDE JOB DRIVEN CRISES.

However, I would NOT call that "socialist." That is a stupid label for what has been happening. There are no good labels, because what is happening does not have any wide-spread, generally understood language to describe the situation that exists after the best organized gangs of criminals capture control over the political processes, to the degree that practically nothing is left to be able to stop them.

CENTRAL BANKS are the core of established systems of ENFORCED FRAUDS. Almost everyone else gets screwed by those runaway frauds, while only a few benefit (at least in the short-term, from the frauds of banksters being enforced by governments.) NONE of the dictionary definitions of words like "socialism" apply, and all references to some leading intellectual to label what is happening are misleading. The single best word is "plutocracy," however that is not correct either, because the greatest "wealth" of those plutocrats is to be able to make the public "money" supply out of nothing.

ACTUALLY, CENTRAL BANKS ARE THE CORE OF CONTROLLING CIVILIZATION THROUGH THE METHODS OF ORGANIZED CRIME. However, there seems no practical point to understanding that better, since the entire system is so totally based upon that, for so long, that there are no reasonable ways for the majority of people to ever be able to understand that their lives are being controlled by enforced frauds, due to the history of money being measurement backed by murder.

The situation that we are looking at is the social successes of controlled civilization with systems of lies backed by violence has driven society as a whole to become criminally insane. We are only beginning to see the wilder and wilder oscillations that are going to be caused as the path of enforcing frauds produces more and more paradoxical consequences, since the force never makes those frauds stop being false, but nevertheless, society continues to be controlled by FRAUDS WHICH ARE FALSE.

The banksters are surely driving one INSIDE JOB CRISIS after another, in order to advance their agenda. However, their agenda is criminally insane. Of course, it appears to make no significant practical difference to understand that, nor to try to develop a language to describe that which is not totally bullshit, because our social systems are almost totally based on bullshit. At present, the banksters' bullshit is overwhelmingly dominant. The only publicly significant opposition is controlled, to be reactionary revolutionaries, who are supposed to be waking up the mainstream morons, to understand the social facts, but which never propose realistic solutions consistent with those real facts. THEY NEVER PROMOTE BETTER SYSTEMS OF ARTIFICIAL SELECTION, CONSISTENT WITH NATURAL SELECTION. Instead, the vast majority of the reactionary revolutions stay WITHIN the biggest bullies' bullshit world view, still using the same bullshit language.

Therefore, it is typical, given the necessary use of language, to refer to the banksters goals as somehow being "socialist," despite that making no sense whatsoever, while completely contradicting the dictionary definitions of "socialism." The banksters are deliberately destroying the middle class, and the kinds of social systems which would allow those kinds of middle classes to exist. However, that is because the ruling classes rule by being the best organized gangs of criminals, who have successfully waged war against those they rule over so much, for so, long that the vast majority of the middle class are mainstream morons, utterly brainwashed to believe in bullshit, while the mostly desultory efforts to educate them are conducted by the controlled opposition of reactionary revolutionaries, who continue to operate within the same frame of reference as the banksters' bullshit social stories, because almost nobody would understand anything else.

The only ways which theoretically could work better would be to understand human realities as manifesting general energy systems, which end up best described by the principles and methods of organized crime. I.e., human realities are ALWAYS organized lies operating robberies, with the banksters operating the most abstract forms of frauds, as symbolic robbery.

However, generally, almost everyone continues to think through using DUALITIES based on false fundamental dichotomies, and therefore, propose bogus "solutions" based on impossible ideals. All of the generally understood and used language about politics and economics is almost totally BULLSHIT. There are realities behind that, but practically NO good language, with good labels, to be able to discuss those realities. Instead, we are operating a civilization based on enforced frauds, which are automatically becoming more criminally insane, the more successful they are. ...

Hence, the wilder oscillations being observed, which are surely going to get wilder still! However, while there will be plenty of destruction of the lower classes that are being ruled over, the ruling classes do NOT deserve to be referred to as the "elites." They merely have psychological and political habits which enable them to back up lies with violence, while the lower classes have social habits were are used to that happening. Overall, the ruling classes are criminally insane, while those that they rule over are also criminally insane. The entire human species has become way too good at lying to itself, because within human societies success was achieved by backing up lies with violence, therefore, our political economy is based on enforced frauds, within which systems the central banks and the most obvious symbols, as the Kings of Fraud.

However, being the Kings of Fraud actually means that the central banks are the most criminally insane, central components of an overall criminally insane civilization. There is no good language to discuss relatively more object facts, because the central social facts are the control of society through systems of enforced frauds, as seen by how central banks can make "money" out of nothing, and do so to deliberately drive crises, in order to move forward their overall criminally insane agenda, while those they rule over are similarly too criminally insane to be able to comprehend that, because they have been conditioned to not want to understand that.

Therefore, the language that almost everyone used to discuss these situations is almost totally based on bullshit, while even those who try to understand things better tend to still be stuck inside of using bullshit language to explain those social situations. Therefore, it is typical, JR, for you to make the kind of statement which you made, as the only kind with a few other people would be able to understand, although, they actually would be misunderstanding things, precisely because they relied upon that kind of ridiculous bullshit language.

In my view, it is impossible to exaggerate the degree to which controlling civilization through being able to successfully back up lies with violence has resulted in that civilization overall becoming criminally insane. The apparent "success" of the central banks, as the biggest gangsters, able to control governments, in order to enforce frauds, DOES HAVE A GLOBAL AGENDA. However, there are no good labels for that, because it is actually the trajectory of the application of the principles and methods of organized crime, which ultimately are CRIMINALLY INSANE, and become more so to the degree that they continue to be socially successful.

While I believe it is theoretically possible to develop a better language, and ways of labeling the phenomena, the groups of people who would like that are vanishingly small. Meanwhile, the groups of people who continue to want to believe in bullshit, and use bullshit language. are overwhelmingly dominant, not only in the ruling classes, but also throughout the controlled opposition. In that context, in my view, JR, while your basic point is correct, the ways that you expressed that point demonstrates that you are operating as another one of the typical reactionary revolutionaries.

The banksters do NOT plan to achieve a "socialist one-world system." What they plan on doing is continuing to deliberately cause crises that enable them to ramp up their ability to control society through systems of legalized lies, backed by legalized violence. However, exactly to the degree that they are successfully able to enforce more and bigger frauds, then civilization as a whole will become more criminally insane. The banksters will surely be able to continue to destroy the lives of the Zombie Sheeple and mainstream morons, or the masses of muppets. However, that does NOT mean that the banksters agenda is not criminally insane, rather, the more successful they are, then the more criminally insane they become, due to the inherent nature of the increasingly severe contradictions that controlling civilization through backing up lies with violence actually results in that civilization overall becoming more criminally insane.

In that context, there is NO good language which is generally understood, in order for enough people to be able to be more realistic, since there has been thousands of years of dominating society through systems of backing up lies with violence, which have resulted in almost TOTAL DOMINANCE OF ALL NATURAL LANGUAGES, AS WELL AS THE PHILOSOPHY OF SCIENCE, WITH BULLSHIT!

The political paradoxes driven by each increment of being able to enforced frauds have created social systems which are criminally insane, and therefore, headed towards a series of psychotic breakdowns. However, practically nobody who was socially successful operating within those systems in the past is able and willing to understand the deeper levels of the truth about that, and even if they attempted to do that, there is no generally understood language which can be used to communicate those insights with any other significant number of people.

The human species has out-foxed itself, by primarily applying its intelligence to get better at being able to back up lies with violence, which is the source of all central banks, and why the behavior of those central banks has been deliberately driving crises, and criminally insane inside jobs, one after another, that the vast majority of people never understood, because they had be conditioned to not want to understand. Furthermore, as your comment above indicated, JR, even people who try to understand things better, and work harder at researching those situations, still mostly end up expressing their findings in ways which continue to be BULLSHIT-BASED.

Thu, 01/15/2015 - 14:29 | 5665821 Ariadne
Ariadne's picture

Swiss Franc Soars Most Ever - A public expressing themselves clearly

Thu, 01/15/2015 - 14:34 | 5665860 Down to Earth T...
Down to Earth Thinking's picture

it is all a repsonse to the reent Russian actions to USD and NG ! predictable and I did about 10 days ago

Thu, 01/15/2015 - 14:59 | 5665922 robertocarlos
robertocarlos's picture

OT Breaking news: There are 2 dead after a terrorism cell raid in Verviers Belgium.

 

Thu, 01/15/2015 - 15:06 | 5665979 john milton
john milton's picture

long on hilti guns

Thu, 01/15/2015 - 15:08 | 5665986 insanelysane
insanelysane's picture

I disagree with the Germany can't leave the EU because the DM will be valued too high.  If (when) Germany leaves the EU the DM is going to be valued slightly higher than the euro is today.  With Germany out of the picture, southern Europe will be printing the euro until it is equal to the yen.

Thu, 01/15/2015 - 15:17 | 5666035 foodstampbarry
foodstampbarry's picture

Calling all 22nd floor bankers!! Jump mother fuckers!!

Thu, 01/15/2015 - 15:26 | 5666075 devo
devo's picture

Obviously a big QE in Europe coming and the swiss want no part.

Thu, 01/15/2015 - 17:03 | 5666577 Monty Burns
Monty Burns's picture

That seems a likely explanation.  There goes my pension pot.

Thu, 01/15/2015 - 15:29 | 5666084 doc333
doc333's picture

For me one of the hardest things to wrap my head around is--- what the HELL do you do with your profits when gold goes parabolic ( and for me that happens not if, but when)? If you sell,  all you get is paper. But, if you don't sell, well, then you have lots of valuable paperweights. Thoughts?

Thu, 01/15/2015 - 15:36 | 5666116 devo
devo's picture

Trade it or hold it (good collateral will have value post collapse).

Thu, 01/15/2015 - 16:06 | 5666288 doc333
doc333's picture

Understood, but if you poses an asset that for all intents and purposes you can never sell, it does present an interesting problem.

Thu, 01/15/2015 - 16:09 | 5666301 devo
devo's picture

I agree.

Thought about it myself years ago, and I came up with either barter or collateral. The idea it is "insurance" is most accurate.

Thu, 01/15/2015 - 16:20 | 5666372 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

I have always thought productive land would be a good idea to trade for it.  Of course keep some too

Thu, 01/15/2015 - 16:26 | 5666399 doc333
doc333's picture

My only issue with land is the fact that the goberment can always find you and levy ever increasing taxes. But, land may be the best option

Thu, 01/15/2015 - 16:33 | 5666444 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Not is you just lease it from someone for life.

Thu, 01/15/2015 - 15:34 | 5666108 I Write Code
I Write Code's picture

In finance, the majority is always wrong.

Thu, 01/15/2015 - 15:39 | 5666142 Vin
Vin's picture

Yea but....you can bet your az that the Boyz got out already.

Thu, 01/15/2015 - 15:48 | 5666190 sidiji
sidiji's picture

the hedgies shorting CHFUSD by proxy relying on Swiss CB peg promise...are the same ones shorting EUR/USD since mid 2014.

That trade is SOOO crowded im not suprised it spilled over into CHF/USD shorting..

Markets as usual dont have a clue.   They've moving EUR/USD down when in fact its the same group of shorting hedge funds shorting both...and these muppets just got margin called.

Thu, 01/15/2015 - 15:48 | 5666204 janus
janus's picture

hells-fuckin-yeah!!!

https://www.youtube.com/watch?v=BG_vh7qkjBw

damn...wish i had time to post today.

janus

Thu, 01/15/2015 - 15:53 | 5666227 Panic Mode
Panic Mode's picture

Hope I will witness the date HK dollar depeg from US dollar?

Thu, 01/15/2015 - 15:55 | 5666236 new game
new game's picture

maybe a secret meeting is in the wings . fed reserve to raise rates soooon.

(you heard it from me first) timing couldn't be better, to normalize? retain faith and credibility? to get the dolla in line? jmfo...

Thu, 01/15/2015 - 16:02 | 5666273 Roger Shermanator
Roger Shermanator's picture

The "market" attempted to do it's typical 10am PST ramp, but it looks like it's going to crash and burn on the landing...

Thu, 01/15/2015 - 16:11 | 5666313 Sunshine n Lollipops
Sunshine n Lollipops's picture

i didn't know black swans could yodel....

Thu, 01/15/2015 - 17:31 | 5666709 tarabel
tarabel's picture

 

 

Once they're fixed, sure.

Thu, 01/15/2015 - 16:12 | 5666315 db51
db51's picture

Ok...I leave the house this morning to head to the farm and it's FUCKING CARNAGE, OIL COLLAPSE, MUPPET MURDER ETC....So I just come in to watch the mayhem only to find everything was just as it was this morning... DOW and S&P pretty much even.....business as usual, and we haven't even gotten to the 2:30 Rampathon....W T F?????   At 59 years old, I realize I'll never live long enough to actually see the house of cards crumble.  Fuck.

Thu, 01/15/2015 - 16:59 | 5666565 Monty Burns
Monty Burns's picture

I feel the same. Have almost given up hoping for the Great Reset with banksters swinging from lamp posts.

Ah well, we can dream......

Thu, 01/15/2015 - 16:29 | 5666418 Rockatanski
Rockatanski's picture

i wounder if george soros made any money on this deal today?

Thu, 01/15/2015 - 16:30 | 5666438 European American
European American's picture

Carnage? I don't think we've quite reached that point yet...

 

Definition of carnage (n)
  1. widespread slaughter of people: widespread and indiscriminate slaughter or massacre, especially of human beings
  2. many casualties: serious injury to a great many people, e.g. in a major accident
  3. BUT IT'S COMING!!!

 

Thu, 01/15/2015 - 16:38 | 5666471 john milton
john milton's picture

cuckoo carnage in progress

Thu, 01/15/2015 - 16:52 | 5666527 NoWayJose
NoWayJose's picture

Would Christine LaGarde call this  CAR-NIDGE  or  CAR-NAHGE? 

Thu, 01/15/2015 - 17:14 | 5666641 bid the soldier...
bid the soldiers shoot's picture

Is that the bedazzled hand of Vladimir Vladimirovich Putin high-fiving with his Swiss friends after these shenanigans?

Or maybe the Swiss don't mind Europe's economy being manipulated by the cretinous Black Adder of the Potomac?

Thu, 01/15/2015 - 17:22 | 5666642 BurningBetty
BurningBetty's picture

Perfect timing for this epic "Jordan Belfort" quote;

http://m.youtube.com/watch?v=WsQncCdC4vY

F***ing HEARTATTACK! Boom! Snap! Gone! Shuffeled of from mortal coil and 20 MUSD stuck in the Swiss(Yep, you read it correctly) bank account.

Sorry, can't stop laughing! hahaha. Priceless! 

Thu, 01/15/2015 - 17:24 | 5666665 Platypus
Platypus's picture

I just watched on TSR ( Swiss Romonde) the full SNB press. The guy basically said they are more interested on the USD/CHF than the EUR/CHF. So I guess they unloaded a truckload of euros this morning and now are going to intervene buying dollars. It makes sense since the dollar will appreciate long term. Smart those Swissies !!! I guess thats why Switzerland is called the land of banks.

Thu, 01/15/2015 - 17:33 | 5666716 Bighorn_100b
Bighorn_100b's picture

I sold all my winners today. Sitting on cash looking to buy more Silver on a pullback. Price of spot gold vs platinum looks interesting as well.

Euro vs $USD going to par. Interesting times!

Thu, 01/15/2015 - 17:37 | 5666749 John Wilmot
John Wilmot's picture

The Swiss have been committed to defending the euro for years, there's been no political change in Switzerland to my knowledge, so I can only conclude that they did this under duress. What kind of duress? I think they must expect a big devaluation of the euro on the horizon, and decided they either couldn't maintain the peg or that the domestic political cost to doing so would have them hanging from lampposts. Either way, I say Huzzah! The Swiss peg was helping the EU be irresponsible. This move increases pressure for them to get their fiscal house in order.

Tangentially, why am I suddenly reminded of the USD-CNY?

Thu, 01/15/2015 - 17:58 | 5666869 Shitgum Suicide
Shitgum Suicide's picture

We were franc with some folks.

Thu, 01/15/2015 - 18:00 | 5666896 Those Fukerz Ha...
Those Fukerz Have R Money's picture

I have a question.

I've been thinking that NYDFS's Ben Lawsky has been sort of hinting that Deutsche Bank was, conceivably, in quite a bit of hot water with them (NYDFS) right now. And Lawsky's office has the power to suspend a banking license.

Could the Swiss National Bank's move have anything to do with anticipating (I sort of hate to say it, but ) an iminenet and outright Deutsche Bank failure? (Or stress test failure?) Maybe the SNB is simply leaving a building at the first whiff of smoke? I dunno.

Furthermore, if the article below is true, and if Deutsche Bank is actually thinking of selling off its retail business--isn't that sort of like "You can't fire me...I quit!" ?

http://www.onestopbrokers.com/2015/01/15/deutsche-bank-considers-retail-...

And Detsche Bank has been trading under some sort of technical level (or level of discomfort, anyway) for a couple of weeks now (below $30.)

This is not a rhetorical question-- I would really appreciate any thoughts/insights/feedback.

(By the way, bank closures in the U.S. happen on Friday afternoons, and the "living will" written and filed by Deutsche Bank makes mention of that--that if there ever were to be a failure/closure--it would happen on a (any) Friday at 4 pm EST.)

Or is Deutsche Bank unequivically okay--at least for the time-being?  

And is the SNB's unexpected move today unequivically unrelated to anything Deutsche Bank-related?

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