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Oh, You Mean They Lied? (Euro Stress Tests)

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http://market-ticker.org/akcs-www?post=166067

Why of course they did....

As part of the tests, 91 of Europe's largest banks were required to reveal how much government debt from European countries they held on their balance sheets. Regulators said the figures showed banks' total holdings of that debt as of March 31.

But......

An examination of the banks' disclosures indicates that some banks didn't provide as comprehensive a picture of their government-debt holdings as regulators claimed. Some banks excluded certain bonds, and many reduced the sums to account for "short" positions they held—facts that neither regulators nor most banks disclosed when the test results were published in late July.

"Didn't provide as comprehensive a picture ... as regulators claimed" = they lied.

Of course the so-called "regulators" didn't regulate, as if they had they would have called these people out on this, and forced them to provide accurate disclosures.

But that didn't happen.

How much "understatement" was involved here? Oh, we have a decent guess....

BIS data from March 31 indicates that French banks were holding about €20 billion of Greek sovereign debt and €35 billion of Spanish sovereign debt. In the stress tests, four French banks, which represent nearly 80% of the assets in France's banking system, reported holding a total of €11.6 billion of Greek government debt and €6.6 billion of Spanish debt.

So the European banks may have reported about one half to one fifth of the actual amounts held?

This morning we've seen some selling over in Europe which Bloomberg attributes to:

“Banks still face problems in regards to their capital ratios,” said Michael Koehler, head of strategy at Landesbank Baden-Wuerttemberg in Mainz, Germany. “Investors will keep worrying about a possible double dip in the next few weeks,” he said, referring to a renewed recession.

Uh huh.

How about this?

Investors are starting to wake up to the fact that the government lied about sovereign debt exposure, and now with Greece's spreads widening and concern about Ireland, they have every reason to be wide awake - all night.

Psst: Listen to what is being said (quietly) in certain circles..... smell smoke yet?

Clearly the banks where going to lie it could cause panic if they admit the truth and god forbid if it has an effect on the share price of the bank.

Free market transparency is alive and well.

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http://market-ticker.org/akcs-www?post=166067

Clearly the banks where going to lie it could cause panic if they admit the truth and god forbid if it has an effect on the share price of the bank.

Free market transparency is alive and well.

It is common knowledge in European investment circles that this "stress test" is a total sham. That does not mean American and Asian investors actually realise the coverup.

WTF is that? It looks like a swan.... but it is black... must be my imagination... must be...

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The American stress tests were just the same. Lies from start to finish. Not sure why people expected anything less, to be honest.

That's the beauty! Asian investors believed the American stress tests. American investors didn't so invested in Europe as a safe haven (Sterling for safety haw haw haw!). Europeans see the US us FUBAR and know the score so invest in the up and coming Asia (Tajine Titface of the Pru one example).

Clusterfvck.

I think a major problem is that investment houses are limited by benchmarks or internal IMA's on what they can invest in. Equity, Bonds, Property, Derivatives (limited). Maybe we have to wait until the best investment choice is to invest in nothing... ... ... So we need to get used to being raped for eternity...

I'm off to watch some porn.

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That's the beauty! Asian investors believed the American stress tests. American investors didn't so invested in Europe as a safe haven (Sterling for safety haw haw haw!). Europeans see the US us FUBAR and know the score so invest in the up and coming Asia (Tajine Titface of the Pru one example).

Clusterfvck.

I think a major problem is that investment houses are limited by benchmarks or internal IMA's on what they can invest in. Equity, Bonds, Property, Derivatives (limited). Maybe we have to wait until the best investment choice is to invest in nothing... ... ... So we need to get used to being raped for eternity...

I'm off to watch some porn.

HPC porn I hope! It's the kind where all home owners are fnackered at both ends.

Those stress tests will be proved a total sham before long. The ticking will not stop until the time is up on this farce.

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  • 140 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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