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davidg

Ubs Failure Could Take Out Switzerland - Economist

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According to The Economist (pp 79-80, 5th July) the failure of UBS, which, if not likely is not improbable, could crash Switzerland. UBS grew out fo the failed Union Bank of Switzerland which had to merge with SBC.

The real worry is that the two leading Swiss banks, UBS and Credit Suisse are highly leveraged with assets worth seven times the entire Swiss GDP. UBS has already written down $38 billion in US assets with more bad news on the way. UBS is trying to flog off bits of the bank, but with little interest in the current market but here is the rub "if either UBS or Credit Suisse fails, the [swiss] economy will be wrecked... in no other major country do banking assets tower over the economy'

One thing that is not so widely known by Swiss saves, the government has a cap on the size of any bailout at SFr 4 billion, and that covers only Swiss deposits.

Anyway, looks like the CHF may not be such a good place to keep money - which is probably why it has not risen much during the current turmoil.

Edited by davidg

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Keep your eye on Zurich and get out of any pensions you have with them becase a little birld told me that all is far from well and they are already under investigation by the useless FSA who must be seen to being something even if it's as good as they did for northern rock

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Isn't Switzerland the HQ for BullionVault and similar companies?

How will they be affected if the govt decide to block all capital/asset outflows in a time of crisis ?

(cf. Argentina about 6yrs ago when they went into meltdown....)

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Why would this take out Switzerland? UBS is a global company and its shareholders are from all over the world. I guess that savers with accounts may have a problem like any other northern rock scenario. But if UBS dies it doesn't matter because the swiss government is not on the hook. Switzerland has lots of banks the cantonal banks do have government backing and the private banks are just that.

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Isn't Switzerland the HQ for BullionVault and similar companies?

How will they be affected if the govt decide to block all capital/asset outflows in a time of crisis ?

(cf. Argentina about 6yrs ago when they went into meltdown....)

Technically gold owned through BullionVault is the outright property of the individual owner. If Switzerland decided to take that, it would be direct theft from other countries' citizens. Whether anything were then done about it would probably depend on the international importance of BullionVault's clients.

But if Switzerland does 'do an Argentina' then anyone with or without gold will have more pressing concerns. And CH would be screwed as a safe haven for dodgy wealth forever. Back to a cuckoo-clock-based economy.

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WELL IF NOSTRADAMUS IS CORRECT IT WON'T BE THE BANKING SYSTEM THAT IMPLODES THE SWISS,IT'LL BE THE LARGE HADRON COLLIDER THEY BUILT AT CERN.......SOME KIND OF ACCIDENT

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Isn't Switzerland the HQ for BullionVault and similar companies?

How will they be affected if the govt decide to block all capital/asset outflows in a time of crisis ?

(cf. Argentina about 6yrs ago when they went into meltdown....)

Nope. BullionVault is a UK based company and GoldMoney is based in Jersey. Neither of these companies are in the business of operating vaults. The gold is stored in vaults operated by ViaMat, a UK company. The gold is your property and not that of the company. If you place your household furniture in storage, its still yours, the company can go bust and the creditors have no claim on it. Off course there is nothing anyone can do if a government sends troops to empty the vaults.

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WELL IF NOSTRADAMUS IS CORRECT IT WON'T BE THE BANKING SYSTEM THAT IMPLODES THE SWISS,IT'LL BE THE LARGE HADRON COLLIDER THEY BUILT AT CERN.......SOME KIND OF ACCIDENT

Have you got a link to the Nostradamus prediction and how it is connected to the Cern collider?

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WELL IF NOSTRADAMUS IS CORRECT IT WON'T BE THE BANKING SYSTEM THAT IMPLODES THE SWISS,IT'LL BE THE LARGE HADRON COLLIDER THEY BUILT AT CERN.......SOME KIND OF ACCIDENT

Leave the Large Hadron Collider alone. It is one of the most awesome machines ever built by man, and i'm sure it will be much better designed that those complex financial instruments the econo-scientists made.

It could create strangelets people!!! STRANGELETS!!!! I don't know what they do but apparently it might destroy the world, which can be no bad thing.

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This thread is very interesting for me as my wife is Swiss and consequently I have in-laws over there.

The full Economist article can be read here:

Swiss banks Snowed Under

The article suggests part of UBS could be sold off. Here is one quite relevant paragraph:

Much of these two banks’ business, in trading and investment banking, is already conducted outside Switzerland. Indeed, the Swiss Federal Banking Commission (EBK) has made no secret of the fact that it would be happy to see some of the high-risk investment banking go offshore, even if that means Switzerland loses rank as a global financial centre. If either UBS or Credit Suisse failed, the economy would be wrecked. To discourage any hope that the government would rescue either should it become insolvent, the Swiss deposit insurance scheme is capped at SFr4 billion per bank and covers only deposits held in Switzerland.

My wife's friend is working for a smaller Swiss bank. His bank is apparently only for those saving very large amounts of money and that if he breached confidentiality about any of their customers he could face massive fines or imprisonment. It makes you wonder what sort of dodgy customers they have!!!

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... It makes you wonder what sort of dodgy customers they have!!!

But they are not dodgy right... ;)

Its da meeja innit!!

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Have you got a link to the Nostradamus prediction and how it is connected to the Cern collider?

here it is:

Migrate,migrate out of geneva

the sky shall turn from gold to steel

The contra raypoz will destroy everyone

before the event the sky will show signs.

contra raypoz roughly translates to:the taker of light.

a refernce to what black holes are pretty good at doing.

Edited by oracle

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Leave the Large Hadron Collider alone. It is one of the most awesome machines ever built by man, and i'm sure it will be much better designed that those complex financial instruments the econo-scientists made.

It could create strangelets people!!! STRANGELETS!!!! I don't know what they do but apparently it might destroy the world, which can be no bad thing.

one cannot afford to be complacent, science in its infant stages is inherenty dangerous.

us humans are intelligent,but not necessarily wise.

we can make the gadgets,but are not always aware of potential pitfalls.

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here it is:

Migrate,migrate out of geneva

the sky shall turn from gold to steel

The contra raypoz will destroy everyone

before the event the sky will show signs.

contra raypoz roughly translates to:the taker of light.

a refernce to what black holes are pretty good at doing.

Sounds more like a bad weather forecast.

Anyway, it's good to know it will only affect Geneva.

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here it is:

Migrate,migrate out of geneva

the sky shall turn from gold to steel

The contra raypoz will destroy everyone

before the event the sky will show signs.

contra raypoz roughly translates to:the taker of light.

a refernce to what black holes are pretty good at doing.

Is that before or after the asteroid hits in 2012?

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Technically gold owned through BullionVault is the outright property of the individual owner. If Switzerland decided to take that, it would be direct theft from other countries' citizens. Whether anything were then done about it would probably depend on the international importance of BullionVault's clients.

But if Switzerland does 'do an Argentina' then anyone with or without gold will have more pressing concerns. And CH would be screwed as a safe haven for dodgy wealth forever. Back to a cuckoo-clock-based economy.

Never put your money, or anything else for that matter, on any information that begins with the word.....

"Technically".

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Is that before or after the asteroid hits in 2012?

Before 2012.It's supposed to herald the start of a major escalation in warfare.Given that we now have the situation with iran brewing up then I would wager this event is likely within the next 12-18 months.

Anyway,there's no asteroid strike in 2012.That's a brown-dwarf star intersecting(but not striking) earths orbital path

The dwarf-star flypast is likely to dislodge phobos,the moon of mars...which WILL strike earth,likely in 2015.

Edited by oracle

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Before 2012.It's supposed to herald the start of a major escalation in warfare.Given that we now have the situation with iran brewing up then I would wager this event is likely within the next 12-18 months.

Anyway,there's no asteroid strike in 2012.That's a brown-dwarf star intersecting(but not striking) earths orbital path

The dwarf-star flypast is likely to dislodge phobos,the moon of mars...which WILL strike earth,likely in 2015.

I was thinking of getting a new dishwasher. This one will probably last for a few more years though. Is it worth it?

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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