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View Poll Results: How long will the CHF peg hold?
Less than a day 1 0.64%
Less than a week 17 10.90%
Less than a month 24 15.38%
Until the end of the year 43 27.56%
Longer 71 45.51%
Voters: 156. You may not vote on this poll

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  #1021  
Old 23.01.2015, 15:01
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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I can confirm the property issue from a friend who had just the problem from a non-paying tenant. When they know them system well, you are in deep doo-doo. I understand many pay the tenants to leave...
Thanks for pointing that out. I was seriously considering buying an apartment in France (benefiting from the exchange rate) and renting it out. Now that gives me pause...
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  #1022  
Old 23.01.2015, 15:16
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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Thanks for pointing that out. I was seriously considering buying an apartment in France (benefiting from the exchange rate) and renting it out. Now that gives me pause...
I would never, ever buy property in France to rent out.
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  #1023  
Old 23.01.2015, 15:17
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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Thanks for pointing that out. I was seriously considering buying an apartment in France (benefiting from the exchange rate) and renting it out. Now that gives me pause...
All what I wrote about France is factual, I am not trying to be funny, say to a Swiss that lives near the border to buy in France, they will laugh their asses off, some do, but never for rent and the pitfalls are way more complex and dangerious than in CH. There is a reason why the same apartment on Swiss territory is 800k and just 50m down the street in FR is 350k EUR.

Also, try to get back your stolen goods. I had a friend whose very rare watch was stolen. Some 5 years latter the very same watch was sold by a prominent French dealer on an auction. Police was involved but couldn't do nothing, under French law once a stolen item has been sold with an invoice the new owner becomes THE owner of the item. Absolutely crazy.
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  #1024  
Old 23.01.2015, 16:11
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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There is a reason why the same apartment on Swiss territory is 800k and just 50m down the street in FR is 350k EUR.
Yes: lower taxes in Switzerland.
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  #1025  
Old 23.01.2015, 16:16
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

Lower taxes alone justify to pay 220% more for the same house? Don't think so.
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  #1026  
Old 23.01.2015, 17:19
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

Croatian parliament has passed a law to peg the Croatian currency against the Swiss franc at the rate before the SNB change last week which caused a 20% drop.

Quite how they will do this in practice I do not know.
Sounds impossible to me
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  #1027  
Old 23.01.2015, 17:23
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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Lower taxes alone justify to pay 220% more for the same house? Don't think so.
120% perhaps is accounted for by lower taxes. the other 100% is for not being in France.
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  #1028  
Old 23.01.2015, 17:29
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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Croatian parliament has passed a law to peg the Croatian currency against the Swiss franc at the rate before the SNB change last week which caused a 20% drop.

Quite how they will do this in practice I do not know.
Sounds impossible to me
It's not quite exactly that if I can understand correct, they have pegged the HRK with the CHF at the old rate for credits pegged to CHF for loans higher than 1M HRK

Either way it's BS decision
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  #1029  
Old 23.01.2015, 22:28
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

This story is a bit the apocalypse for us because we rely a lot on EU funding.
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  #1030  
Old 23.01.2015, 22:45
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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This story is a bit the apocalypse for us because we rely a lot on EU funding.
If you are referring to research funding, then I'm also a researcher...and yes that would seem to be a huge disadvantage, i.e. now all grants are essentially 20% less than would be normally required to sustain. Not likely that anyone would succeed with similar grants increased by the same percentage.

Hmmm....
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  #1031  
Old 24.01.2015, 19:23
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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It's not quite exactly that if I can understand correct, they have pegged the HRK with the CHF at the old rate for credits pegged to CHF for loans higher than 1M HRK

Either way it's BS decision
Yes you do.
This is only for people tied with CHF loans.
And this is a worm going on for too long; I wish they had solved this like Hungary did - move all the loans into local currency years ago, and not keeping them tied onto CHF.
They would a) make a smart and logical move, b) get rid of people protesting all the time - there is more than 100 000 50000 people having such loans

And yes again, it is a dumb decision by the prime minister, as most of his are.

Last edited by dbucar; 24.01.2015 at 19:55.
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  #1032  
Old 24.01.2015, 19:42
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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Yes you do.
This is only for people tied with CHF loans.
And this is a worm going on for too long; I wish they had solved this like Hungary did - move all the loans into local currency years ago, and not keeping them tied onto CHF.
They would a) make a smart and logical move, b) get rid of people protesting all the time - there is more than 100 000 people having such loans

And yes again, it is a dumb decision by the prime minister, as most of his are.
Thanks, so who swallows the exchange loss?
The mortgage provider?
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  #1033  
Old 24.01.2015, 19:48
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

How far down would the Euro slide? Parity with dollar perhaps?
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  #1034  
Old 24.01.2015, 19:52
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

80% of the money I made before moving to Switzerland for the most part is still at my american bank in USD. I will stick with my Greenbacks for eternity. USD will regain its power on CHF eventually again. I miss those 2003 conversion rates visiting CH to visit family just as a teen 1USD=1.30CHF.
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  #1035  
Old 24.01.2015, 20:03
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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80% of the money I made before moving to Switzerland for the most part is still at my american bank in USD. I will stick with my Greenbacks for eternity. USD will regain its power on CHF eventually again. I miss those 2003 conversion rates visiting CH to visit family just as a teen 1USD=1.30CHF.
Hahahahaha, you made me laugh, that is a good one

I also miss my teenage years waking up with a boner in the morning but we all know they ain't coming back
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  #1036  
Old 24.01.2015, 20:03
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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Thanks, so who swallows the exchange loss?
The mortgage provider?
I don't know many details except for what I read from internet media back home.

And sorry, my numbers were a bit exagerrated - the number of people involved is 50000+, more precise:
- cca 15000 citizens with loans of 1,000,000 HRK (today cca 130,000 CHF) and above
- cca 40000 citizens with accumulated loans of 7,000,000,000 HRK

People were taking out loans mostly to buy apartments, whose prices exploded back then in 2005/6.
In those times, 1,000,000 HRK was about 230,000 CHF (today it is 130,000).

They are playing "ping-pong", throwing the hot potato around between the citizens, banks and the Croatian central bank.
There is still no definite solution on how to handle this, as there is a number of people who fall unto "social cases", then a number of "higher class" who have 2-3 properties, and then the "middle class", who still have hard time coping with high loan payoffs.

Altogether, even without this recent CHF explosion there were huge issues with that group of people vs banks vs state.
Now it just got more prominent.

I'm happy none of my folks went on to catch that "opportunity" in 2005.
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  #1037  
Old 24.01.2015, 20:15
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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80% of the money I made before moving to Switzerland for the most part is still at my american bank in USD. I will stick with my Greenbacks for eternity. USD will regain its power on CHF eventually again. I miss those 2003 conversion rates visiting CH to visit family just as a teen 1USD=1.30CHF.

If inflation in US is consistently higher than in CH then it is unlikely.
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  #1038  
Old 25.01.2015, 02:29
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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How far down would the Euro slide? Parity with dollar perhaps?

You have to see that the exchange rate has NOTHING to do with the value of a currency. The actual value of CHF EUR USD is one-to-one-to-one


For decades. Morocco, Algeria and Tunisia kept the exchange rates UP, by very strict controls, just in order to finance the imports from France. How the artificial keeping DOWN the exchange rate of the EURO is to work remains to be seen


In CH, the rightwingers want to peg one-to-one the wages to the EURO and the leftwingers the Prices. The inevitable result will be that whole companies will do their calculations in EURO

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  #1039  
Old 25.01.2015, 09:04
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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You have to see that the exchange rate has NOTHING to do with the value of a currency. The actual value of CHF EUR USD is one-to-one-to-one.
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  #1040  
Old 25.01.2015, 10:57
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Re: SNB Pegs CHF to the EUR!!! [and the aftermath of the removal of the cap]

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80% of the money I made before moving to Switzerland for the most part is still at my american bank in USD. I will stick with my Greenbacks for eternity. USD will regain its power on CHF eventually again. I miss those 2003 conversion rates visiting CH to visit family just as a teen 1USD=1.30CHF.
AFAIR $1 used to be ~Fr. 2.50 in the early 80s and ~Fr. 4.00 in the early 70s.
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