This thought coming from outside where I was thinking though I find it very interesting, and they’re pretty solid arguments.
With Switzerland having a GDP of about $300billion, they can’t afford to bail out UBS and Credit Suisse, interesting times ahead.
More to read on FT Alphaville, Portfolio.com and Crooked Timber.
Make sure to have a look at this chart which I borrowed from FT Alphaville… it is scary.
So… what’s the impact on currency… it would seem long USDCHF might be a good position to take… or perhaps even better if you (like me) think the USD is going to struggle in the coming years… long EURCHF?
I haven’t taken a position, though I might have a look at it as a possible trade.