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Why I Continue to be Critical of the SNB Abandonment of its EUR Peg

Why I Continue to be Critical of the SNB Abandonment of its EUR Peg

5 Years ago | February 10, 2015 00:00:00

I was shocked about three years ago when the SNB decided to start to defend the EUR against the CHF at 1.20. Those of us who were around in the early 1970's saw what happened when the SNB tried to peg the CHF vs. the USD and then its aftermath, which resulted in over a decade of CHF instability as the markets adjusted to the distortions created. How could they possibly have believed it would be different this time? Well of course it wasn't, and I don't feel we are through the adjustment process yet. Having spent a good period of time in California, I liken it to movements along an earthquake fault. The better scenario for those living along a fault line is usually small frequent movements rather than pressure build

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