EU Bank Stress Test Was Unrealistically Easy

While more European financial institutions failed the bank stress test, the test only imposed unrealistically easy “stress.” According to ZeroHedge, the so-called “stress test” for European banks was missing real stress that might occur. Just when you thought the humor out of the central bank that just released a stress test whose adverse scenario did not even assume the most likely Eurozone outcome, i.e., deflation, couldn’t get any better, moments ago we learned that the test, Read more […]

Bank Failure Spreading but We Keep Pretending

Let’s see, the trajectory of impending bank failure here: 2011 – eight banks failed the “test,” with a shortfall of 2.5-billion Euros. 2014 – twenty-five banks failed the “test.” with a shortfall of 24.6-billion Euros. From RT.com: “25 EU banks fail ‘stress test’, exposing $31bn shortfall.” Nearly one in five leading European banks have failed the stress test conducted by the European Central Bank, which revealed a $31.2 billion (€24.6 billion) capital gap in 25 banks showing Read more […]

If You Think the Stress Test Was Hard, Just Wait For the Real Stress

I just love it when Federal Reserve guys worry about “bubbles.” Where does the ‘soap’ that produces bubbles come from? Why, from the Federal Reserve, of course. They provide the “liquidity” for the big banks to make massive bets in the financial markets with virtually free money (conjured out of nothing, of course… that’s what the Fed produces). Most of our “growth” over the past decade is a total illusion–we aren’t producing much of anything anymore, and make much of our Read more […]