2015 January


“I just received the following note from one of our Inner Circle members.  Below the note is my response.”


SNB just said that keeping the peg would have cost it 100 billion CHF for january alone – there are limits in this world.



“Mike’s response…”

Yep and how much did they make when the Swiss franc exploded?



8 replies on “SNB”

They made profits in the books last year 38 Billion CHF. But by pulling the peg, all the foreign currencies they were holding, esp. the € lost value. They lost 60 Billion CHF last week in 1 day due to the devaluation of the currency reserves.


But that’s not the cumulative effect because CHF soared yes?

So every CHF out there went way up in price and so yes the other money went down in value but the corresponding values should be big net + for CHF?


Difficult to say who the winner and losers will be in this currency war at the end of the day. 40 bn avoided losses or more? Draghi just announced QE of 60 bn Euros per month.


Yes its becoming clear now that you hit nail on head… C-war…

Ironic also that someone neutral would have fired the first shot:)


The SNB saw itself runnung out of ammunition. It’s more like it stopped shooting :). It was the FED who started rolling out the QE and ZIRP tanks and with it nominal wealth creation. And the ECB is following the narrative that through it the US economy is back on track and booming (!).


I share your doubts. But it is interesting to see how narratives are put out and are taken up by the media to explain why Draghis decision is wise. The headline in todays paper was, we need to do as the Americans, as they are ahead of us “back on track”.


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