Report on the fallout of the SNB´s “H-Bomb”

Fallout from Switzerland’s wildly swinging currency ricocheted around the world, hitting global banks with tens of millions of dollars in losses and triggering the collapse of some brokerage firms.

SNB H-Bomb

In the first move, back in September 2011 the rise in the SNB´s balance sheet (reserve assets) was temporary, enough to convince everyone they were serious. Several months later, in mid-2012, to hold the euro Draghi had to come out with his “whatever it takes” pledge. The SNB´s BS jumped “once and for all”.

Now, in the expectations of a significant monetary policy move (QE?) by the ECB, the SNB “chickened-out”, a surprise move with deleterious consequences for many.

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