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Because the Swiss could wake-up one day and find they no longer own their banking system or large manufacturing companies.  The 1997 Asian Financial Crisis is instructive.  At the last stages the Indonesia rupiah fell such an extent that it was possible, exaggerating only slightly, to buy companies producing $50 million worth of goods a year for $50 million.

As I've already said, currency traders don't give a hang about the relative valuation of the Real Economy of the country whose currency they are manipulating.  There are, however, trans-national companies who do; their purpose of being is to seek out "under-valued" assets and grab 'em on the cheap.  This process, confined within the US, is how Warren Buffet took a $3 million textile company and in 45 years turned it into a $372.229 billion conglomerate.  At the point everybody goes stampeding out of the Swiss Franc it's going to fall and if it falls low enough¹ it exposes Swiss companies to the predators.  

¹  something nobody can predict

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sun Aug 14th, 2011 at 01:21:54 PM EST
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