Slouching toward the Apocalypse

I recognize it is in the interests of mass media to pump up economic news with doom and gloom scenarios in order to sell their wares. But at what point do we start worrying that the news being reported is really, really, really that bad? Reuters: The Swiss National Bank shocked markets on Tuesday by setting an exchange rate cap on the soaring franc to stave off a recession, discouraging investors anxious about flagging global growth from using the currency as a safe haven. Using some of the strongest language from a central bank in the modern era, the SNB said it would no longer tolerate an exchange rate below 1.20 francs to the euro and would defend the target by buying other currencies in unlimited quantities. The move immediately knocked about 8 percent off the value of the franc, which had soared by a third since the collapse of Lehman Brothers in 2008 as investors used it as a safe haven from the euro zone's debt crisis and stock market turmoil. Analysts said that the SNB should...(Read Full Post)