According to Didier Duret, the chief investment officer for Amro Private Banking, “In the current environment, the world is flying only on one engine and this engine is the U.S. economy, (…) That’s why it is so important to look at these numbers coming out from the U.S.”
And the numbers coming in from Bloomberg BusinessWeek tell more about this upswing. The biggest lenders in all of Switzerland (Credit Suisse Group and UBS AG) gained 4.6% and 3.6% each. This represents a sizable gain for this quarter, and perhaps in a more telling tale, it shows us that there is a connection between an increase in payroll payouts in the United States and increased lending in Switzerland.
Coincidence or a sign that financial institutions abroad could be backing a much needed U.S. economy comeback? Seems very serendipitous!
In an interesting twist of the plot line, unemployment was up to 8.3% in the U.S. for the same time period, so where are these payroll payouts winding up? Tell Anthony Clavien what you think by chiming in below in the comments section.