Credit Suisse...

…has become a history. The demise of the legend of the European banking might symbolise a mini-banking crisis witnessed in early 2023. I deliberately underline its small scale, as comparing to the meltdown in late 2008, the current tribulations pose no major risk to the financial system. Nevertheless, the insolvency of the Silicon Valley Bank has reminded about terms such as bail-out, Chapter 11, deposit insurance.

The sixteenth largest bank in the USA had a quite specific portfolio of risky exposures to tech start-ups and venture capital businesses. Many of them no longer thrived as the pandemic officially came to an end, so online ventures had to wind down. Besides, several businesses could not withstand interest rate hikes to level unseen in the USA since 17 years. For one of the banks this turned out to be a recipe for a disaster, while the rest of the banking sector carry on. Investors indeed reacted to the collapse of SVB, but the sell-off on stock exchanges reflected uncertainty, rather than panic.

Credit Suisse going under has surprise nobody keeping track of the banking sector and the takeover by UBS is to ensure a soft landing to the financial system. The lesson to be learnt is to keep away from murky institutions, a label Credit Suisse had worked hard for. On this occasion I recalled being recruited by CS in 2017 and being turned down on account of exorbitant expectations towards my pay. Time has proven that deal was not meant to be nailed down.

The recent opinion of European Court of Justice on inequality of rights in case a CHF mortgage loan agreement is nullified also cast a shadow of doubt on stability of the banking system in Poland. In fact whoever panics is overreacting. The mortgages in CHF are in fact being slowly written down for nearly a decade and most of the burden has been absorbed. As tackling the problem was eventually spread over time, losses could be gradually absorbed by banks. Currently only some banks with the biggest exposures to mortgages in CHF might be in need of capital injection is the ECJ ruling (binding, unlike the aforementioned opinion), but the risk of a Polish bank being on a brink of collapse is low.

Investors feared the turmoil in the financial sector could spill over to the real economy, hence stock exchanges and commodities were in the red in March 2023. If you bet the markets are overreacting, than an opportunity to buy up underpriced assets has cropped up. Lower prices of crude oil and other commodities can also contribute to faster disinflation, which in turn is likely to boost economic revival.

Prague

While staying in Szklarska Poręba, we hatched the idea it would have been a shame not no pop in on Prague, which was mere 130 kilometres away. We ventured there on Saturday, 4 March and it was my first foray to the capital of the Czech Republic since 2001.

To the right – after an ascent through Petrinske Sady park we reached the Hrad hill from which one can delight in a remarkable panorama of the old town and districts of the eastern bank of Vltava. The weather was not splendid, overcast skies and +4C.

Having ambled around the Hrad hill we headed towards the Charles Bridge and passed by the John Lennon wall, which oddly enough is listed as one of main landmarks of Prague by Google Maps.

Having shunned crowds and paid entry to the Golden Lane we roamed past the afore- mentioned bridge which turned out to be the most crowded place out of those we visited. Prague’s historical part looks definitely superior to the one of Warsaw, fully destroyed during WW2.

The market square in Prague still suffers from excess concrete (betonoza), insufficient greenery and not prohibited access of motor vehicles. That very venue was actually a letdown.

Incidentally, we ran across the spot I best remember from my school trip to Prague in 2001 – Vaclavske Namesti alley and the Narodni Muzeum in the distance. The place is also (in)famous for picture of soviet bloc intervention in Prague in August 1968. Note Marks & Spencer has not wound down its business in Czechia.

Back close to the Cerni Most P&R close to Prague’s Metro B line terminus, where we left the car for the entire day for the equivalent of PLN 10. For those visiting the capital of the Czech Republic an excellent solution, since the car park is just 2 kilometres away from the motorway. On my way back I was snapped by the speed camera – for driving 59 km/h were the speed limit was 50 km/h I was fined the equivalent of PLN 200, which I duly paid. I must admit our southern neighbours are less tolerant to those speeding and do not take their time in chasing the disobedient motorists. I Poland road authorities and the police turn a blind eye at speeding below 10 km/h and photos from speed cameras arrive months, rather than a week later.

Nordic Skiing

Back from my first winter holidays (other than in a warmer place) ever. And back from an invigorating experience of acquiring a new skill from scratch. As a 35-year-old man I wore ski for the first time in my life, which was a kind of scary, yet thrilling. The originator of the trip was my girlfriend, since over 5 years a keen ski-runner. Once the school winter holiday were over, we headed for Szklarska Poręba, a favourite destination of ski-runners in Poland.

Dolny Śląsk is my favourite province of Poland, having its spirit regardless of the season of the year. I ventured there in 2019, 2015, 2013 and in 2009 (this reminds me PES will turn 15 in less than a year) and I am quite likely to return there more often. 

The drive (within speed limits) to Szklarska Poręba takes some 5 hours door-to-door and (sadly) beats the train connection, whose duration is nine hours, if you choose a direct connection. But if you choose the train and get off at Szklarska Poręba Górna station, such splendid view will be the reward for the length of the ride. The highest mountain to the right is Szrenica. Pay attention to the weather – during 5 out of 7 days of our stay we enjoyed clear blue skies and temperature fluctuations from around –10C at nights to close to 0C in early afternoon. The snow had fallen just before our arrival.

Szklarska Poręba is hilly and full of contracts. Many blocks of flats for rent have been built in the recent decade, but run-down old buildings are still in abundance – the one snapped to the right could be turned into a jewel, if properly renovated.

Now a shot for train anoraks, with Newag-built Koleje Dolnośląskie train. Szklarska Poręba Górna is where trains from Wrocław, Warszawa and Liberec terminate. Trains to Wrocław and to Liberec (via Jakuszyce and Harrachov) run once an hour, but long-distance services from the capital can be spotted there only twice a day.

Such enchanting encounter with the nature was probably meant to enchant me. Crisp snow, with ski tracks prepared, forest, sunshine. I am far from the civilisation, far from work, far from things which bother me.

I must confess I had had plans to learn Nordic skiing in Warsaw, but recent winters rarely brought a sufficient deep snow surface and eventually I ended up moving on skis for the first time on 27 February 2023. I took a private lesson with an instructor, which was definitely a good choice. In my age catching the coordination of body movements and learning to keep the balance takes a bit and has turned out not as easy as it seemed. Besides, I had to overcome my fear of not having control of how I slide on skis (no matter how slow my motion was). Over five days I grasped the basics of two styles and trained braking, the effects of which I still feel on backside. I fell over several times, but was fortunate not to have an injury. The next skiing experience is due next winter, I hope not to forget the skills learnt this year by then.