Subscribe to Money Morning get daily headlines subscribe now! Money Morning Private Briefing today's private briefing Access Your Profit Alerts
  1. Chris F. | December 16, 2011

    "Swiss Finance Minister Eveline Widmer-Schlumpf noted to the Swiss Parliament … Swiss franc appreciation when the euro fails. That's not if the euro fails, but when the Euro fails."

    If she was speaking German, it is quite likely that "when" is a miss-translation and she meant "if". The German word "wenn" can mean either, depending on context.

  2. Gordon Shumway | December 16, 2011

    MF Global = "Black Swan" event for the American securities markets. As far as I am concerned, anyone who buys ANY U.S. electronic "security" today, especially options, futures, ETFs &/or stocks/bonds held in street name, is taking a risk that is incalculably large.
    Got physical?

  3. Waldmann | December 16, 2011

    Where are the Dollar morticians (not that long ago)?

  4. Philip Chew | December 16, 2011

    You forgot to mention that when the 3-legged stool fail, the Central Banks in Europe (ECB) prints more money to keep liquidity available to the European banks (like the Feds did in 2008-2009). The ECB has resisted so far but they may be forced to soon. And they may suceed in calming the market for a while.

  5. Gill O’Teen | December 16, 2011

    There has already been an actual bank run. Although in Latvia, which unless there was a really powerful earthquake I missed – is part of Europe, "The panic among Swedish-owned Swedbank's depositors began Sunday (12/11/2011) after rumors spread that the financial institution was facing legal and liquidity problems in Estonia and Sweden."


  6. Werner | December 16, 2011

    As a Swiss National and resident I would not go along with Keith's suggestion to buy Dollars, at least not against Swiss Francs. The corrupt US government and bankers are more just as liikely to squander it thatn Europeans are. I would also mention that the overall balance sheet of the US and the UK is in much worse shape than Europe, globally speaking.
    The safe haven Dollar is a fairy tale and it will go under like the Euro, perhaps a bit later, but it's demise is inevitable. Just hoping that the Swiss with their legendary slowliness will lose the race to the bottom so to speak.

    • James | December 18, 2011

      Absolutely right!!!! The U.S. Dollar is a terrible item to purchase. I am hoping the the dollar does get stronger near term and drive the price of precious metals down further. When it happens, I will use my dollars to purchase as much gold and silver as I can. It is the only "real" money" that exists. As far as the politicians here being corrupt and crooked, show one place on this planet in which that is NOT the case.

  7. Kris K | December 16, 2011

    The consequences of a Euros currency failure is hard to fathom. Considering real estate financing in the EU : What should non-EU companies / individuals do about their commercial / residential mortgages contracted in Euros : re-mortgage in another currency? Which bank, which currency?

  8. Javier Valero | December 17, 2011

    If the euro fails, gold will be chosen by many as a refuge instead of the dollar. I don't think your recommendation about gold is correct. The collapse of the euro will send its price very high.

  9. Joe Bartolo | December 18, 2011

    Certainly European banks are in a crisis but so is much of the us financial sector and indeed the US dabt load is horrendous.
    reders ar right to point to the US as well as Europe. The moves made by German and Spanish companies need not be seen as disaster anticipation but simply caution.
    The Spanish bond auction went very well, it was oversubscribed.

    If the fall of the euro were anticipated, CEOs and Bondsmen would not be leaving money inside the euro zone, but move it out – the Swiss franc and Norwegian krone should be going through the roof, etc.

    Chris F. is right about "wenn" – it looks to be just a back up plan presented to cool MPs, not a preparatory step.

  10. Gordan Finch | December 20, 2011

    I agree with Keith Fitz-Gerald, it is more than plausible when the Swiss put the shutters up around its currency take warning, Zurich has two evils the country and Zurich Financial Services, the Insurer.

Leave a Reply

Your email address will not be published. Required fields are marked *

Some HTML is OK