Friday, July 15, 2011

If Greece soon defaults what value are the EU banks' stress tests?

It seems the entire world except for Angela Merkel, Wolfgang Schauble her Finance Minister and perhaps also President Sarkozy, now expect Greece to default, perhaps even with days.

It would save a lot of banking analysts a lost weekend reviewing the results of the ridiculous EU bank stress tests, due out in half an hour, if Greece just defaulted now and we could all finally discover where all the vast debts really are hidden.

No provision has been made for ANY Sovereign Default in any of the EU countries for these supposedly "more realistic" tests than those last year.

One report on the tests is here. The real situation in Spain as to how that country handles the losses from their own property bubble, will, of course, not be covered. My comments on that topic will appear shortly on Orphans of Liberty.

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