A major contributor to Switzerland's buoyancy is a business-to-business currency and the banking institution behind it. The story of this success has its initiation during the bleak days of the Depression.
The principled belief that a stronger local, state and national community results in a stronger more consistent bottom line for lending institutions is not just feel good chatter. In fact, their existence relies upon this business principle.
The global economy has entered a dangerous new phase. The recovery has weakened considerably, and downside risks have increased sharply. Strong policies are urgently needed to improve the outlook and reduce risks.
The banking industry mentality is deeply conservative -- not the kind that makes sure that loans are collateralized and deposits protected. Rather, it is a mentality produced by an out-of-date understanding of the world.