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Realistbear

Stress Tests: Worth Less Than Paper Used To Print Them

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http://blogs.telegraph.co.uk/finance/jeremywarner/100008747/european-stress-tests-werent-worth-the-paper-they-were-written-on/

European stress tests weren't worth the paper they were written on
Remember last summer’s famous stress testing of European banks? This was meant finally to put the lid on the European banking crisis by reassuring the money markets that eurozone banks were essentially solvent.
Temporarily it seemed to work. For a few months things calmed down. But now the tests have turned out to be not just demonstrably worthless, but in some cases downright dishonest too.

Few on here believed them either.

Could the Euro be over? Merkel seems to think so IMO.

$ anyone?

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If the Euro vanishes it will be carnage. Only a couple of countries would be better off. Not sure they can let it.

Fancy having to go back to Francs and Deutchmarks and that messing around with exchanging currencies. I still have some Francs, could be worth something in a year or two then?

Actually it would boost the economies and create jobs. All those computer systems would need changing to handle multiple new currencies, new money would need printing and distributing, and the old stuff collected and burned. Any other jobs?

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If the Euro vanishes it will be carnage. Only a couple of countries would be better off. Not sure they can let it.

Fancy having to go back to Francs and Deutchmarks and that messing around with exchanging currencies. I still have some Francs, could be worth something in a year or two then?

Actually it would boost the economies and create jobs. All those computer systems would need changing to handle multiple new currencies, new money would need printing and distributing, and the old stuff collected and burned. Any other jobs?

It's the PIIGS that will get shiny new currencies. They will benefit from increased tourism and exports after they have devalued (and their property will become very cheap for overseas buyers- the Germans will mop it up).

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It's the PIIGS that will get shiny new currencies. They will benefit from increased tourism and exports after they have devalued (and their property will become very cheap for overseas buyers- the Germans will mop it up).

Only if the German banks survive massive devaluation of their collateral (PIIGS real estate) and are still willing to lend in "shiny new currencies"

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1.33920

Down from 1.42 when poisons started to hatch out of the mud. 1.65 a year or so ago.

Euros may not be the safehaven some thought.

The euro has traded between 90cents and $1.65 since it was launched. In 2005, I got a rate of around $1.15 per euro and thought that was good ! ;)

The over-valuation has been manufactured by the US and the EZ for donkeys years. Helps the balance of trade for each block for x months, then switches. The US needed high value the last few years, got it. Now it's the EZ's turn.

The Euro is a safe haven for those that live and work in the EZ. We pay little or no conversion charges that were the mainstay of FX and banks for generations. If you live outside the EZ, the euro is a speculative punt, like the Yen, sterling, dollar etc.

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  • 238 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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