Excellent article posted for reading by johnmcclean. The newspapers that picked up on the one stress measure released by the ECB on AIB and BKIR need to relook at this article and get to grips with the full spectrum of testing conducted by the author. The Irish banks are (as most subscribers to this blog have pointed out) way out in front on the European bank scene. The island would have to fall into the irish sea for them to be in any type of trouble. Beware the English and French banks (and Deutsche who have really lost it). It would seem that they have done little to rectify the history of 07-08 and find themselves in dire capital constraints, going forward. With the English now swimming alone in the big bad world of finance, one has to say good luck to RBS, Barclays and who knows, maybe Lloyds (at lease they have refocused on real lending into retail). Would love to have seen the Swiss twins included in this survey, to confirm that they have been bankrupt since 07-08. If concerns about the stress tests had anything to do with the SP of BKIR then believe me it is not true. Drop this into the journalists to report on on Sunday!!
to have your own currency - you can print more money - you can allow the value to drop in order to aid recovery, then you can increase interest rates to increase profits and nobody can do anything about it.
Not true as our sharp boys are learning = "you can fool some of the people all of the time BUT you cannot fool them all all of the time."
These tricks were very useful back in '92 with Norman Lamont conjuring recovery as if by magic - everybody knows about it now and have factored the experience into their calculations.
Just hit home the sterling effect, last October i purchased a UK share at £1, yesterday it hit £2, delight I had doubled up,However when i looked into it I realised the share had to hit £2.36 for me to have doubled my Euro investment.
Imagine that ramped up for BKIR repatriated profits
Couldnt agree more with you Borninusa kicking the can down the road policies from ecb has to end sooner rather than later or risk the collapse of eu project politically the outlook looks gloomy for current eu leaders and thei re-election prospects aka merkle ect whats needed to end this crises once and for all is for draghi to step up and now.
If you really have a quiet night this is also worth reading. Or if you just go to the graphs at the end and you will get the picture. Basically, as i understand it, its the capital shortfall from EU bank stress tests redone under US test rules. Look for bkir.
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