Bonds In Conversation : Mad Men, Rich Men, Poor Men
I am peeved off because the entire document which I had painstakingly typed for the weekly has been wiped out and there is no way to retrieve it. This is a brief rehash or gist of what I wrote which I am typing out hurriedly because I have to go prepare for a bbq now and will have to return to add to it later.
Whatever happened to FORWARD GUIDANCE, Please ? Swiss National Bank (SNB).
Well, the shock of yesterday’s move will live long after Thomas Jordan leaves his post as the chairman of the SNB.
Mad Men – the central bankers who would play God (and also the bar I was hanging out at when the news broke).
Rich Men – the only people in the world who would have swiss francs lying in their current accounts. Usually those with a billion or two to spare and would not mind the negative interest rates. Now all richer by 20% to the USD overnight.
Poor Men – the traders rumouredly fired or put on admin leave after racking up huge losses yesterday. The fx trading platforms that have declared themselves insolvent after last night. And about half the Polish population with CHF mortgages.
We also cannot help but wonder about the wives and mothers and sisters who have profited this time after the last chair’s wife made a killing from the peg news and he was forced to relinquish his post. http://www.theguardian.com/business/2015/jan/15/thomas-jordan-swiss-national-bank-chief-profile
Yet it is the most unfortunately timely decision they would have had to make because Helicopter Draghi is due next week with a bazooka full of QE that will beggar the Swiss-folk if they do not act in a hurry right now.
Better beggar another/others than themselves.
Courtesy of Asian Macro, our hedge fund friend, and other sources.
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