Stress Test Part Two Discredited Before It Is Even Announced: All Irish Banks Pass "Comfortably"

Tyler Durden's picture

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malikai's picture

Autofellatio at its best.

markmotive's picture

The smartest man in Europe owns gold.

Who am I to argue with the smartest man in Europe?

TheFourthStooge-ing's picture

Stress Test? They're playing a game of charades with PIIGS.


schismjism's picture

Top o' the mornin' to ya!

qussl3's picture

Fucking idiotic to test for robustness when exposed to a hypothetical economic shock, when the most likely shock is the failure of the institutions themselves.

Not to mention NOT testing for sovereign default, when that is precisely the most likely trigger for any fun and games.

This is nothing more than a setup to sucker in some dipshit bagholders, which dumbass SWF will step up?

LMAO's picture

"which dumbass SWF will step up?"

The Norwegian?

They'll do about anything chasing yields. Risk management, is not a topic.

Although arguably we are in the middle of some "diversification" of the SWF portfolio by buying up top notch real estate in Paris, London and anywhere else (after all the Commercial/Real Estate market has bottomed and is making a blistering post recession comeback, right?) I expect them to do anything in their power to bailout the banksters. Stoltenberg has already been hinting "more bailout money to come" for his Norwegian banking friends, on the first signs of weakness .




swissinv's picture

at then end of the day it's anyway all about liquidity and not capital

Ghordius's picture

So what?

The previous Irish Government bailed Anglo-Irish out, brought Debt/GDP from 40% to over 100%.

The current Irish Government did nothing, which is IMO the same as fucking the Irish People/Taxpayers.
For the second time.

So what are the chances that any Irish Bank won't be bailed out? Zero. Give them AAA and leave them rot.

ZH: there will be a new year for Europe next year. Looked up in the calendar. It's there.

Silverhog's picture

Great driver, guaranteed to run like a clock. No need to look under the hood, trust me.  

StormShadow's picture

Arrgghh, whose been luckin in me pot 'o gold!! Tis full I tell ya, full to the brim. Stare at the the pratty rainbou and be on ya marry way, Lad!

Lord Welligton's picture


Irish Life and Permanent is already known to require €4bn in equity.

It is insolvent.

A large chunk (don't know say 40%) of its mortgage book is linked to the ECB rate (trackers) but their cost of funds is far higher (don't know how much higher).

They are losing money hand over fist.

sangell's picture

The Irish Central Bank can whip out another 50 billion Euros in ELA anytime it wants backed by the full faith and credit of something or other so why aren't Irish banks well capitalized?

wandstrasse's picture

All these stress tests are really tough and serious - FOR ME. My farce-tolerance-o-meter is at its limit.

THE DORK OF CORK's picture

These are not banks as defined by the more convential modern terms.

They are safety deposit boxes that are being drawn down to pay external sovergin debt.


TheFourthStooge-ing's picture

These are not banks as defined by the more convential modern terms.

They are safety deposit boxes that are being drawn down to pay external sovergin debt.

I'd even go so far as to say they are collection points for tribute paid to foreign masters.


centerline's picture

Did anyone expect anything different?  Pass = fail.  And leaves the general population confused - not knowing who to believe.  Of course, thier intuitions tell them the tests are bogus and the banks are insolvent - but the ability to process this "feeling" has been beating out of them over the years.  And only a few people (not enough) have any clue the shitstorm that is coming as a result.

Sambo's picture

How long can the world tolerate this kind of blatant cheating?

The banks are not serving money, the money is serving banks.

StormShadow's picture

News flash: Red Cross now including free jar of Vaseline with every aid package.

Sudden Debt's picture



Buy whoever does the tests or is involved should be shot if it turn out that they don't.



pods's picture

This is not surprising in the least bit.  They need the banks to be solvent, bam, they are solvent.  

I imagine some of QE2s loot got sloshed around to keep everyone happy.

Was anyone really thinking that the people who run the game were going to sell out themslves?


PulauHantu29's picture

I iwsh these guys had written my Final Exams in school.......

Problem Is's picture

We Learned Years Ago
From Wanker Timmay that all stress tests of Banksters are bullshit...