Swiss central bank predicts mild recession!

All those secret banks accounts must be good for the economy!

Roth-Swiss recession relatively mild - paper

ZURICH, Jan 19 (Reuters) - The Swiss economy is facing a relatively mild recession thanks to its overall resilience but the Swiss National Bank may turn to unconventional support measures, SNB Chairman Jean-Pierre Roth said in a newspaper interview.

"With the exception of the financial sector, our economy enters the downturn in top-shape," Roth told Germany's Frankfurter Allgemeine Zeitung according to an interview released on Monday, one day ahead of the newspaper's publication.

"That's why we are predicting a relatively mild recession at the moment," Roth said, repeating the central bank's latest forecast that gross domestic product will shrink by 0.5 to 1.0 percent in 2009.

The economy would not recover before 2010, Roth said. "It's clear: The recovery has to start in the United States."

The SNB already supported the economy with the cuts in its target rate for the 3-month Swiss franc LIBOR, which the central bank has lowered by a total of 2.25 percentage points to 0.5 percent, Roth said.

The central bank had also nearly doubled its balance sheet and supplied the economy amply with money, he said. "I do not want to exclude further measures," Roth said, adding that he would not exclude the purchase of securities by the SNB either.

http://www.reuters.com/article/economicNews/idUSN1937065220090119

That it can duck this recession as well, based on the fact that commodities, even in a declining market, will still continue to be bought.

I hope they're right, because I'm not eager to go back to the States looking for work. We'll see.

Largely due to the outlook in China.

One thing for sure though- outside of NAB and Macquarie, the banks look pretty good (having not bought into the US subprime crap).

Wwstpac in particular neve bought ino that scam....

where have i heard THAT before!!!

Relatively speaking.

Unlike other nations, the housing market hasn't crashed, the reserve bank has considerable leeway with its monetary policy- and the Labor government has broad support for economic stimulous measures.

Say goodbye to the federal budget surplus- though arguably this is precisely the reason why building up a surplus in boom times is important.

State governments on the other hand- we'd rather not go into them.

invest money or do they store and charge fee to keep the money.

The accept deposits and pay x% and charge fees.
They loan the money at y%.

Bank makes profit based on difference between y% & x% plus fees paid.

Swiss Banks tend to be slightly more profitable due to a combination of:
1) high national solvency
2) low rates paid
3) high fees and very large deposits

The "secretness" of swiss banks is largely exaggerated.
Since 9/11 to open a swiss account a US citizens needs to provide SS# and Swiss govt routinely works with US govt to freeze funds used in tax evasion, fraud, terrorism, and drug trade.

There are more "secret" banks in the Caribbean however you run the risk of the one day the bank saying "what depsoit" and your $20 mill in hidden assets (only on a computer screen) ends up in the pocket of the govt and/or bankers.

I wondered what the attraction was. Guess not so much now. Thanks again.