Quote:Outbursts of obscenities and confusion followed the Swiss central bank’s surprise decision to abolish its three-year-old policy of capping the Swiss franc against the euro, according to traders in London’s financial district. The U-turn sent the franc as much as 41 percent up against the euro, the biggest gain on record, a move that one trader estimated may cause billions of dollars of losses for banks and their customers.
In a deflationary environments banks and their customers will lose their 'investments'.Quote:At least one electronic currency-trading system temporarily halted transactions, adding to the mayhem.
Quote:Deutsche Bank was among currency dealers to suffer disruptions to electronic trading, with its Autobahn platform temporarily ceasing to provide quotes, according to a dealer from outside the bank. The Frankfurt-based lender is among the four biggest dealers in the $5.3 trillion-a-day foreign-exchange market, along with Citigroup Inc., Barclays Plc (BARC) and UBS, according to Euromoney Institutional Investor.
As the markets will be falling rapidly many traders will try to put in their orders. There will be confusion (e.g. a person wishing to sell may 'buy' etc). Electronic networks will jam and computers will freeze...
Expect more volatility going forward.
NB: Quotes from Bloomberg
HereConventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.