Thursday, February 19, 2009

Switzerland going broke, too?

Looks like debts in Swiss Francs going bad in Eastern Europe could make a mess of the Swiss financial sector. The Swiss Franc has long been viewed as one of the most stable around. That reputation has seen the value of currency rising rapidly, making those Eastern European debts even more precarious. 

In another interesting development, the Swiss National Bank recently began selling debt in US dollars. This story suggests it is doing this to cover part of the US$60 billion in toxic debts held by UBS, Switzerland's largest bank. 

The more you look into the detail, the more all this looks like a bathtub full of worms....  

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