Switzerland is currently going through an economic crisis of historic proportions. After 2025, Credit Suisse will no longer exist.

Switzerland is currently going through an economic crisis of historic proportions. After 2025, Credit Suisse will no longer exist. There are three reasons why this is happening.<br><br>#1. Credit Suisse is on the verge of collapse because people and businesses are pulling out all of their money. In the past week alone, outflows have reached $100 billion. This is alarming because it means that the bank is losing the trust of its customers. This is known as a **bank run**. When depositors remove their money from a bank en masse, the bank is unable to meet their demands. This leads to a downward spiral where the bank's assets shrink, leaving it unable to cover withdrawals.<br><br>#2. UBS is also losing money. UBS suffered a net loss of CHF 14.5 billion ($17 billion USD) in 2022, largely due to the absorption of Credit Suisse. A significant portion of this loss can be attributed to the impairment of goodwill resulting from the acquisition. This impairment, amounting to CHF 13.4 billion, reflects the bank's reduced expectations regarding future returns from its wealth management activities.<br><br>&#x200B;