well the new year has started as now ever other year since the establishment of the central banks. Anyway some really have gained much in the past 100 years, especially states mostly. At least temporarily. Now the Swiss national bank has decided not to fight against a more expensive Franc.
Anyway it has cost quite a few banks and “dealers” so much money that they had to close down their business. In this case I’m not sorry for them, they have believed the central banks and that’s t fault by any means. I myself have lost quite some money while buying puts. That’s kind of “fighting” the central banks. Up till today I’v lost is. But I do not believe in the goodness of central banks.
They are the masters of distortion, hindering price finding which gives an idea about “reality” and they are the drivers in stocks. Without the money printing of the central banks, we wouldn’t have record highs in stocks. And we surely we would not have record lows on interest of states. States like Italy just have to pay a bit over 2% or so annually .
The action of the SNB was IMHO a emergency break. I calculated and AFAIKT it has cost the SNB roughly around 75 billions to let the limit go. If they were careful merchants they would have to deduct the losses. I’m sure they will be a bit slow with it.
Anyway if you trust central banks you trust defrauders. That’s a simple fact. So we’ll see if that was the new beginning of the end of the believe in the almighty central banks. I bet most will still rely on them, you can be sure among them are the deledefs of the world.