Uncovered emails regarding his family's fx dealings may have forced Hildebrand from the SNB, but...


Uncovered emails regarding his family's fx dealings may have forced Hildebrand from the SNB, but his biggest mistake will turn out to be his euro policy, writes James Saft. By offering to buy unlimited amounts of the currency, he makes a junior trader error - a trade that will work well most of the time, until one day it doesn't, and then it will be a disaster.
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  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
     
    It's amazing how often these "junior trader" errors occur. One of the reasons socialism never works in the long run (although in short runs it can work spectacularly as the bullet trains and autobahns are built) is that the system can't change as the world does. Free economies make the painful adjustments all the time. It means some aging plants in St. Louis are closed (the latest anti-Romney ad) and some are opened elsewhere. But the entire economy doesn't sink all at once. Socialism freezes the status quo and the changes come in one large tsunami, earthquake or the disaster of your choosing.
    10 Jan 2012, 11:14 AM Reply Like
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