Interesting article
http://www.zerohedge.com/news/2013-04-17/australia-new-switzerland
I can see where they´re coming from, after 9 years living in Switzerland things have changed dramatically while I´ve been here:
- Bank privacy out the window, names being handed over to foreign governments (particularly US, whose citizens are no longer welcome to open Swiss accounts). Massive capital outflows as a result.
- Investment bank incompetence, resulting in near collapse of the biggest banks
- Peg to the upside on the Euro (with luck I transferred a lot of Swiss Francs into Euros just before the 2011 peg, some at near parity). The Franc can only weaken against the Euro from here.
- Loss of international competitiveness (something hurting Australia also)
No doubt money flows from former safe havens into Australia instead will help support the dollar and the inflated property prices there. Things can change quickly though.
http://www.zerohedge.com/news/2013-04-17/australia-new-switzerland
I can see where they´re coming from, after 9 years living in Switzerland things have changed dramatically while I´ve been here:
- Bank privacy out the window, names being handed over to foreign governments (particularly US, whose citizens are no longer welcome to open Swiss accounts). Massive capital outflows as a result.
- Investment bank incompetence, resulting in near collapse of the biggest banks
- Peg to the upside on the Euro (with luck I transferred a lot of Swiss Francs into Euros just before the 2011 peg, some at near parity). The Franc can only weaken against the Euro from here.
- Loss of international competitiveness (something hurting Australia also)
No doubt money flows from former safe havens into Australia instead will help support the dollar and the inflated property prices there. Things can change quickly though.