Stupid is as Stupid Does

Switzerland has spent over a century building a safe, predictable, stable currency. Sadly, as one of the last bastions of sovereign stability, the nation is now feeling the unintended consequences of their scotch ways. It is teetering on the verge of recession because their currency is too expensive. As a consequence, Europeans are cancelling trips to the Swiss Alps because everything is too expensive there. Swiss are driving across the (0pen) border to buy TVs and food in Italy where their francs go much further.

Thus, the central bank intervened in currency markets today to knock down the franc. Tonight, the franc is trading above where it started the day.

Ditto Japan.

Consequently, the Swiss and Japanese central banks' wallets are a few billion dollars lighter tonight ... and currency traders' wallets are a few billion dollars heavier.

When will central banks learn??