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Is The Swiss National Bank A Fraud?

The price of shares in The Swiss National Bank is up 11 days in a row, soaring 150% in the last two months.

SNB Stock Price, 2010 - 2017

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SNB Stock Price, 2010 - 2017

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That sounds like a ‘tulip’ bubble-like ‘fraud’…

Bitcoin and SNB, 2013 - 2017

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Bitcoin and SNB, 2013 - 2017

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The SNB is up over 120% in Q3 so far – more than double ‘bubble’ Bitcoin…

SNB and Bitcoin, Jul 2017 - Sep 2017

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SNB and Bitcoin, Jul 2017 - Sep 2017

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Let’s check with the markets ultimate arbiter of what’s fraud and what’s real – JPMorgan CEO Jamie Dimon:

  • It’s a bubble (because it has exploded vertically in the last few months) – check
  • It’s a fraud, there’s nothing behind it – check
  • It’s a business where people can invent a currency out of thin air – check
  • People who buy it are “stupid” – check
  • Shocked that anyone can’t see it for what it is” – check

In fact, The SNB farce is now hitting the mainstream mediaWSJ notes The SNB is a rarity among rarities. Only a handful of central banks – including Japan and Belgium as well as the Swiss – have private shareholders.

Bitcoin and SNB, Jul 2017 - Sep 2017

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Bitcoin and SNB, Jul 2017 - Sep 2017

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…those looking for a good reason behind the rally, or trying to judge whether the stock is fairly valued, will likely be disappointed.

While the SNB does release monthly data on its balance sheet and quarterly profit, it doesn’t issue the reams of financial metrics that most listed companies do. The central bank also isn’t covered by analysts in the same way as commercial banks or companies.

UBS economist Alessandro Bee, who covers the SNB as a central bank and not as a stock, said he sees no particular reason why the stock rose.

There are only 100,000 shares outstanding and the stock is thinly traded, which can exaggerate price moves. On an average day, about 174 SNB shares are traded, compared with nearly 12 million for Credit Suisse AG.

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So Jamie – is The Swiss National Bank a fraud?

Full story here
Tyler Durden

ZeroHedges’ Tyler Durden is the hero of Fight Club, the 1999 movie based on Chuck Palahniuk’s novel that reflected Chuck’s experience in the Cacophony Society Quote: “Goddamn it, an entire generation pumping gas, waiting tables, slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War’s a spiritual war… our Great Depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact. And we’re very, very pissed off.” –> see more about Tyler on snbchf

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Permanent link to this article: https://snbchf.com/2017/09/durden-swiss-national-bank-share-fraud/

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