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For Strong and Weak, Debt Pressures Rattle Europe
By LIZ ALDERMAN
Published: August 3, 2011
GENEVA — The almighty dollar used to be the world’s safest refuge in times of trouble. But what do you do when you are worried about the dollar, as many people are now?
Come to Switzerland.
An avalanche of dollars and euros has been tumbling into this Alpine outpost at record rates, as investors see the franc as a haven from the twin debt crises in the United States and Europe. And the Swiss are not happy about it.
On Wednesday, the typically silent Swiss central bank declared the currency “massively overvalued” against the dollar and euro, and unexpectedly cut interest rates in an attempt to weaken the franc. The franc retreated slightly but is still too strong, as far as the Swiss are concerned.
“The franc is like the new gold,” said a Geneva banker who would give only his first name, Dmitri, insisting on the discretion that is the hallmark of this reserved nation. “It’s crazy and it’s all anyone is talking about, in the morning, at lunch, at dinner parties.”
Full Hundred
By LIZ ALDERMAN
Published: August 3, 2011
GENEVA — The almighty dollar used to be the world’s safest refuge in times of trouble. But what do you do when you are worried about the dollar, as many people are now?
Come to Switzerland.
An avalanche of dollars and euros has been tumbling into this Alpine outpost at record rates, as investors see the franc as a haven from the twin debt crises in the United States and Europe. And the Swiss are not happy about it.
On Wednesday, the typically silent Swiss central bank declared the currency “massively overvalued” against the dollar and euro, and unexpectedly cut interest rates in an attempt to weaken the franc. The franc retreated slightly but is still too strong, as far as the Swiss are concerned.
“The franc is like the new gold,” said a Geneva banker who would give only his first name, Dmitri, insisting on the discretion that is the hallmark of this reserved nation. “It’s crazy and it’s all anyone is talking about, in the morning, at lunch, at dinner parties.”
Full Hundred
