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ralphmalph

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http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7873792/Europes-toothless-bank-tests-making-matters-worse.html

I do not know whether to laugh or cry. The stupid EU goons think having a stress test with no stress is going to reassure the market that the EU banks are fine.

They forget that the US stress tests reassured the market because 10 out of 19 banks failed and had to be recapitalised.

But in Eurolooney land Greek debt is fine, no problems there apart from the fact that sensible banks have already market it down 50%.

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....

I do not know whether to laugh or cry. T..

My advise would be to stop reading loony drivel written by wingnuts and get your life back. Then you can laugh and cry over things that matter.

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My advise would be to stop reading loony drivel written by wingnuts and get your life back. Then you can laugh and cry over things that matter.

My advice would be to swallow your (I assume acquired) french pride and accept the fact that the whole market is questioning the scope and methodology of these so called "stress tests".

European Banks’ Hidden Losses May Threaten EU Stress Test Plan

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My advice would be to swallow your (I assume acquired) french pride and accept the fact that the whole market is questioning the scope and methodology of these so called "stress tests".

European Banks’ Hidden Losses May Threaten EU Stress Test Plan

Your article appears to contradict the AEP article. I really don't therefore understand the point you are trying to make at all?

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http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7873792/Europes-toothless-bank-tests-making-matters-worse.html

I do not know whether to laugh or cry. The stupid EU goons think having a stress test with no stress is going to reassure the market that the EU banks are fine.

They forget that the US stress tests reassured the market because 10 out of 19 banks failed and had to be recapitalised.

But in Eurolooney land Greek debt is fine, no problems there apart from the fact that sensible banks have already market it down 50%.

http://exiledonline.com/the-stress-test-scam/

For the stress tests the degree of “stress” applied to the banks was calibrated by two possible economic scenarios for 2009 and 2010. The “baseline” scenario estimates US GDP contracting -2% in 2009 and rebounding to 2.1% growth in 2010. This scenario has unemployment at 8.4% in ‘09, and 8.8% in ‘10, with housing prices down -14% and -4% in those two years. The “adverse” scenario assumes -3.3% and +0.5% GDP, 8.9% and 10.3% unemployment, and -22% and -7% in hosing prices in 2009 and 2010.

Yep the stress tests in the US where thorough and can really give the market confidence.

Unless of course US govt policy has been to hit these targets at all costs to maintain the illusion US banks are sound.

However the European banks are just as screwed.

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Your article appears to contradict the AEP article. I really don't therefore understand the point you are trying to make at all?

AEP article:

RBS and other City institutions have warned that Europe’s stress tests for banks are almost useless and may further damage confidence if they fail to cover the risk of large losses on sovereign defaults by Greece and other Club Med states.

Bloomberg article:

Investors say they don’t know if some banks are hiding bad loans, whether they have enough capital to withstand a debt default by a European state and whether governments can afford to rescue them. The European Union still hasn’t disclosed the tests’ criteria, including if they contain a sovereign default.

The message is the same.

If the stress tests don't factor in the worst case scenario, i.e. one of the PIIGS defaulting, they are meaningless.

Just another pathetic smoke and mirrors exercise by the hapless Euro beaurocrats.

Only, this time it ain't gonna work.

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http://exiledonline.com/the-stress-test-scam/

Yep the stress tests in the US where thorough and can really give the market confidence.

Unless of course US govt policy has been to hit these targets at all costs to maintain the illusion US banks are sound.

However the European banks are just as screwed.

The fact is that they did give the market confidence because with even mild stress 10 out of 19 failed and had to recapitalise. I do not mind the EU stress testing their banks with light stress if 50% fail. What we are being told is that they are all 100% hunky dory and all going to pass even before they have been stress tested.. This is the lie.

Edited by ralphmalph

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......

If the stress tests don't factor in the worst case scenario, i.e. one of the PIIGS defaulting, they are meaningless.

Just another pathetic smoke and mirrors exercise by the hapless Euro beaurocrats.

...

The worst case scenario is global nuclear war.

Greece has defaulted already. This is obvious to everyone.

The test is by the ECB not the EU.

If you think an idiot like you or I can see through it why do you think bankers and institutional investors cannot? Or maybe you are just wrong?

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The worst case scenario is global nuclear war.

Greece has defaulted already. This is obvious to everyone.

The test is by the ECB not the EU.

If you think an idiot like you or I can see through it why do you think bankers and institutional investors cannot? Or maybe you are just wrong?

The ECB or the EU allowed the Stress test to be done by the banks themselves. The EU or ECB told the banks the criteria and said send us the results.

Poacher turned gamekeeper?

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Greece has defaulted already. This is obvious to everyone.

But they haven't actually restructured their debt yet.

What happens to French and German banks' balance sheets when they do?

We'd like to know :)

If you think an idiot like you or I can see through it why do you think bankers and institutional investors cannot? Or maybe you are just wrong?

Speak for yourself matey...

And read the article I linked: institutional investors ARE raising doubts about the stress test, and they do not like what they see so far.

Simple as that.

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The worst case scenario is global nuclear war.

Greece has defaulted already. This is obvious to everyone.

The test is by the ECB not the EU.

If you think an idiot like you or I can see through it why do you think bankers and institutional investors cannot? Or maybe you are just wrong?

I don't really get what you're driving at; because a nuclear war is worse we shouldn't panic? Or are you suggesting that Greek debt is already off everyones balance sheets? I mean, that is the only useful interpretation of "Greece has defaulted already. This is obvious to everyone."

Because the first item is irrelevent, and the second is plainly wrong, I'm tempted to think you're a blinkered Euro-centric enthusiast who in the face of the collapse of the Euro system is putting his fingers in his ears and shouting loudly.

Is that unfair?

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  • 258 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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