That slams the lid on this story.
On January 15, the Swiss National Bank (SNB) shocked international markets by abandoning the 3-year-old exchange rate floor of 1.20 Swiss Franc (CHF) per Euro (EUR). Put simply, this means that the SNB stopped spending billions of Swiss Francs to buy euro-denominated bonds.
The market reaction was brutal, punishing the Euro and every foreign exchange and options trader on the wrong side of this trade. Some forex trading firms will go under. Foreign exchange trading desks within banks are, of course, part of ongoing unwilling taxpayer largesse.
A glass of Johnnie Walker Blue is up $6 to $41 at the Belvedere Hotel in Davos, where many delegates stay and everyone wants to stay. The thing about Davos, though, is that it was already incredibly expensive.