EURCHF 1.20 floor

I wonder if the SNB move was premature. Just today Credit Suisse came out with a study saying that while the strong Swiss Franc was hurting, it was not suffocating the economy.

But I guess this is one of those game changers like when the US prohibited Gold purchases back in the depression? Now: "No more hoarding of CHF allowed"

I guess people betting on a strong CHF just have to remember, that the CHF is a relatively small market and it won't take that much to scare the buyers of Swissies away.

I'm untouched by this move personally, having been killed on the CHFGBP move from 1.52 to 1.25... now 1.35-1.37.

Not much room for upside though... and the population at large isn't as uniformly behind the SNB measures as one would imagine. I wonder if they haven't become a media-scared victim...

Nice move on the SMI. +4% in minutes...

Fellow bloggers view:

A+++++ to Switzerland for finally slapping down these disgusting parasitic speculators pushing up the Swiss Franc to absurd levels that were 40% or more above fair valuations. Switzerland already made it clear to these manic speculators that it was totally unacceptable to be bidding up the Swiss Franc beyond fair value and fortunately they have finally taken effective and correct moves to slam down these unwanted and unwelcome speculators in the Swiss Franc who have caused massive damage to the Swiss economy. Thank you, Switzerland, for doing this and moving towards returning to a stable and reasonable valuation of the Swiss Franc.

Fellow bloggers view:

This is no good for Switzerland - they just gave up their "hard currency" for some dubious short-term benefits, good only for a small segment of their society - they have effectively chained their lifeboat to the sinking Titanic!

I hope though that this move will only be temporary - that the Swiss rebels and forces their stupid (or corrupt?) central bankers to reverse this move! If not - one lifeboat less for the rest of us...

Thanks GOD for (physical) gold and silver for they will be serving as Noah's Ark!

Fellow bloggers view:

This is a very poor decision by the SNB. They will now find depositors from all over Europe choosing the Swiss Franc. Marginally solvent European banks will also choose the Franc as a haven. We are now in a new stage of Currency Wars and uncooperative economic decision making. That is dangerous.

seth8777 | Sep 7, 2011 04:16 AM ET

How can a central bank with a strong currency not sustain forever weakening it? They just run the printing presses. And how can they make a loss if they buy a weaker currency and sell it again once it appreciates? In the contrary, they gonna make huge profits like the German Bundesbank did in the 80s and 90s when tried to weaken the German mark against the USD. Only a country with a weak currency will eventually run out of currency reserves trying to keep a peg to control import prices (like Russia was almost bled dry in 2008). It seems like this is just a hedgefund manager who cries foul since he lost a safe haven where to park his money while shortening the markets (together with his pal Soros). Oh, and the suggestion to invest in Chinese Renminbi, well, China has not been too well-known on its transparency, have they. How many bad loans from the real estate bubble are lurking in Chinese banks books? Also Rogers is known for his commodity investment advice in 2008, that backfired. Oil is still not back at 147 USD.

CashMcCall | Sep 7, 2011 09:10 AM ET
SOUR GRAPE... Rodgers was long SWISS FRANCS. So today his is bitter and telling the world the Swiss made a huge mistake when in fact, he and SOROS his old pal make the big mistake.

Jim Rodgers has been a relentless promoter of commodity bubbles. He has used the crisis just like Soros to promote his absurd theories about economics with half truths. But neither he nor Soros are economists.

There is one absolute certainty, if you push up the price of oil, you kill economies. Every modern recession has been preceded by high cost energy futures. Goldman is the largest trader of oil along with Morgan. Rodgers trades oil, so does Soros. They know that if they push up oil, all agricultural commodities follow. It take a lot of diesel to grow an acre of food or to raise a pound of beef.

So Rodgers commodity fund is built on a house of cards and speculative bubbles. As long as he can broadcast from his home in Singapore this expatriate can reach the US marketplace media and deliver his poison message.

He and Soros both got nailed by the Swiss who got tired of the swiss franc bubble.