Quote:
Originally Posted by plorf  ^^larvidchr: true enough, but I prefer that solid, stubborn "oh we'll be fine" to that hysteric german whining I am subjected to constantly. They were even complaining all the time when their economy was running.. and now.. fuck me, I can't read german newspapers anymore. |
Can't quite see why Switzerland would be feeling too smug at the moment, given this:
More job cuts as UBS makes biggest loss in history of Swiss business - Times Online
UBS reported the biggest annual corporate loss in Swiss history yesterday, as it outlined plans to cut a further 2,000 staff at its troubled investment bank.
And then there is the meltdown in Eastern Europe; Austria is about to go under, and Switzerland is taking a hit, too- and it looks like this was entirely without US help, except maybe for what European banks learned from geniuses in the US:
Failure to save East Europe will lead to worldwide meltdown - Telegraph
In Poland, 60pc of mortgages are in Swiss francs. The zloty has just halved against the franc. Hungary, the Balkans, the Baltics, and Ukraine are all suffering variants of this story. As an act of collective folly – by lenders and borrowers – it matches America's sub-prime debacle. There is a crucial difference, however. European banks are on the hook for both. US banks are not.
Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. En plus, Europeans account for an astonishing 74pc of the entire $4.9 trillion portfolio of loans to emerging markets.
They are five times more exposed to this latest bust than American or Japanese banks, and they are 50pc more leveraged (IMF data).