The War with Francs

“In everyday life we are rarely aware of the impact of macroeconomic changes on us. The disastrous effects of these fluctuations have afflicted tens of thousands of homeowners who took out mortgages denominated in Swiss francs at a time when the exchange rate was highly favourable. When the Swiss currency appreciated, many of them found themselves on the brink of bankruptcy. They should have taken into consideration that in case of a decades-long liability, the currency is more than likely to spike to previous levels. This situation favoured gamblers, not those who wished to honestly repay their debt. The safest option for non-gamblers is to take out a mortgage in the currency in which you earn. We trusted banks and financial analysts thinking that happiness is just behind the corner. By jumping on the bandwagon, we created demand that contributed to the increase of the value of the Swiss currency. The franc recovered, but those who bet on it at the wrong time did not. It is worth considering whether the blatant promotion of “traditional values” by marketers and promoters actually reflects our dream about a home, family and family celebrations, or is it just a tool that reduces us to homo mortgagee and turns into just another factor influencing the arrhythmic pulse of currency and commodity rates on the stock exchange markets?”
D.F.

photo: Wojciech Chrubasik