I for one, as you no doubt know, feel that the Swiss Franc is the world’s most over-valued currency. The Swiss banking system has been used as a haven for many decades and the nature of many of these accounts has always been questionable. If the flow of this money was suddenly reversed, I believe that the USD/CHF rate would be much closer to 1.50 than 1.00 and that EUR/CHF would also gain appreciably.
One event which would send a tidal wave rather than a ripple through the Swiss banking industry is the US government’s request for details on some of UBS’s clients.
Think this one through. If some changes are forced onto the Swiss private banking industry it will give us one of the biggest one-way trading opportunities in recent years.
