Australian Banks Given One Week To Prepare For European "Meltdown"
Whereas previously we had heard extensive horror stories about banks being told to prepare for the end of the world in case the European summit (the latest and greatest one from last Friday which was supposed to find a cure for cancer among other things) failed, and even went so far as to read about preparations for trading in the drachma on a when issued basis, once the summit passed (and it was clear that media posturing would do nothing to fix what has already been a failure and it would be best to remove the threats of "reality" from the public's attention) all such "end of the world" speculation promptly disappeared - after all why remind people that things are now worse than ever. Until today. According to the Australian Finance Review (link - subscription required), banks down under "have been given 1 week by regulators to stress test how they would handle a spike in joblessness, plunge in home prices spurred by EU debt crisis." Aka a European "Meltdown." And since we don't have immediate access to the article, we leave it to Bloomberg First Word to describe for us what the article says:
- Australian Prudential Regulation Authority envision worst-case scenario of 12% unemployment, 30% drop in house prices, 40% fall in commercial property values, AFR says
- Banks will assume that write-offs, other mitigation measures are unavailable; later stress tests might allow for such steps, AFR says
- Australia’s banks have A$87.2b of exposure to Europe, or 2.7% of assets, with A$74.6b of it mostly tied to bank borrowers in France, Germany, Netherlands, AFR says, citing RBA statistics
Why is this notable? Because unlike before, when media reports were really a propaganda ploy to get European politicians to collaborate (what has now proven to be an impossible task), and nothing but a rhetorical device, this time around, the warning is for real. And, more importantly, we have a sense of urgency, courtesy of the 1 week deadline: the question then is is it really that bad, and does Europe truly have a little over a week for global banks to prepare for the inevitable fall out?
Lastly, how long until our own prudent leaders decide it may be time to push the Stress Test scheduled for next year forward, just in case the "unthinkable" does happen, and US banks end up getting stampeded even as the rest of the world is already prepared for a worst case scenario?
We are confident Tim Geithner will get right back to us asap on all of these open items.
(15 votes)
»
- Login or register to post comments
- 39279 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- Guest Post: The 2-Product, 2-Customer Wonder Called Australia
- Scientific Experiment By Top Laboratory Shows that Cosmic Rays Affect Cloud Formation, Which In Turn Affects Climate
- Guest Post: Startling The Global Community, Canada Withdraws From The Kyoto Convention
- China Enters The Danger Zone, SocGen Presents The Four Critical Themes
- Friday Night Economic Indices
Well, it's more notice than you get with incoming ICBMs.
Fuck mate. Throw another vampire squid on the barbie.
Lots of European Bank Holidays coming up and every household will be provisioned to the hilt.
Maybe Santa will give Deutsche Marks to Hans this Christmas ??
I am not Hans, but I would welcome him. I still have Deutsche Mark - paper and coin. Unfortunately, it was not unusually for the generation of my father and grandfather to change the currency more frequently. That and the hyperinflation may be the reason why my family always invested into Gold and Silver. Having said that, the Deutsche Mark was a stable and good currency.
Yet Australian MSM reports nothing of this, nor of any problems with their economy. The Oz sheeple are being led to the slaughter.
Ahmeexnal, Not all of us are sheep being led to the slaughter ... some of us are on here getting our warnings before others. :-)
Good to know some are aware.
Now turn up that AC/DC !
ANGUS YOUNG RULES!
Damn, and I thought Aussie was a true AAA. Notice the Bloomberg article compared the Euro debt held by Aussie banks to their ASSETS, not their CAPITAL.
vampire squid - thats gold.
Usually don't laugh out loud when reading ZH, but the picture of V squid sizzleing on the grill did it. Well played, mate!
"Usually don't..." You don't?! Bro, I come here not just for my first source of information, but pretty much everyday something makes me laugh out loud! Today's been good so far; the first two comments on this one both cracked me up.
I HOPE ALL YOU PLEBS ARE ITCHING FOR A FIGHT...TPTB AND THE NWO WANT YOU TO GO POSTAL....TAKE OUT A POLI OR TWO AND MEET YOU 9MM VS 9MM THEY WANT YOU PISSED. WHAT MORE MUST THEY DO? STEAL YOUR HOME, YOUR SSN FUNDS ,YOUR JOB, YOUR SAVINGS,YOUR 401K ,HYPER INFLATE YOUR FOOD COSTS, MEDICAL COSTS, EDUCATION COSTS , DUMB YOUR KIDS DOWN TO F-TARDS IN SCHOOL, STOP DOMESTIC ENERGY ... ALL DONE....YES ITS ALL THERE FOR YOU TO SEE AND GO BALLISTIC ABOUT. OATHKEEPERS ,CITIZEN PATRIOTS, MILITIAS OF MANY ILK, FREE MARKET CAPITALIST, BIBLE THUMPERS ,2ND AMENDERS AND 10TH AMENDERS THEY ARE FLIPPING YOU THE BIRD AND DESTROYING YOUR FUTURE---- DEBT SLAVE POLICE STATE IS THEIR PLAN FOR YOU ...DO YOU AGREE??!!??.......GOT MY POPCORN AND MY A.K. JUST WAITING FOR THE GO AHEAD.....
Wasnt today when the US debt/GDP crosses 100% ?
Fake Philly Fed report prolly goosed the fake GDP number and pushed the crossover 'til New Year's.
IMO, Japanese style, we will continue to scramble and find mitigating measures, so that we will not have a sudden burst, but a gradual deflation of the balloon. These measures will not, of course, prevent the process of collapse, but only slow it down.
What is interesting about the US situation is that the political "leadership" is simply and honestly totally clueless about what is happening, and continue to kiss the ass of the Wall Street greed platoon.
I don't think they are clueless. I think it works to their advantage if people believe they are clueless. People are more likely to string up the sinister than the clueless.
Just to be more clear, I think there was a time that they were clueless, but that was about five years ago. Most things now are orchestrated, IMO.
Nah, ever since the days of Alexander Hamilton, and if you don't like that, since the days when those honorable chaps got on board a luxury railcar to go to Jekyl Island they haven't been clueless. Our current conditions have been in the works for 100+ years. Got to give credit to the Founding Fathers for the strength of the country and the Constitution for holding back these evil men for so long. But now the gig is just about up. Will the tree of liberty be watered again soon with the blood of tyrants and patriots? Enough of just the innocents dying.
I would much rather see it fast and hard so we can see Wall St. bankers jumping from sky scapers...It would just be more entertaining IMHO...
IMO, Japanese style, we will continue to scramble and find mitigating measures, so that we will not have a sudden burst, but a gradual deflation of the balloon. These measures will not, of course, prevent the process of collapse, but only slow it down.
What is interesting about the US situation is that the political "leadership" is simply and honestly totally clueless about what is happening, and continue to kiss the ass of the Wall Street greed platoon.
I'm going to sing the Doom song now...
Doom doom doomity doom doom DOOOOOM!
Is this bullish? BITCHEZZZZZ
Cheers!
Whhhhhoooooooossshhh!
Swan: Crickey, what was that? Smells like burning hair!
Moodys: Your AAA credit rating...
Swan: Strewth mate! We only just got it polished!
Been an Aussie all my life and I don't remember ever hearing anyone use those words, crickey or strewth, in common usage, anywhere.
In fact, if you did use them in a conversation, as though they were commonly-used words, people would look at each other, and tend to move away from you, assuming you were a bit of a boofhead.
i don't think we have to worry,
we have this amazing treasurer called Wayne Swon.
He got a prize from the banking cartel saying he was the best treasurer in the world.
so why worry....
we're cool.... totally.
:/
You must believe in the grey swann, he will protect us and kiss it all better, and provide copious tax funded depository bailouts for the truely needy running the best financial institutions on earth.
He's on our side digger - and I feel a whole lot better about that! |:-0
She'll be apples mate.... god help us.
hey i replied to a post of yours below - hope you get a chance to check it.
I was going to be working over Christmas ... if this article is on the money I may not have to ... may not be able to ... there is an upside ...
"Well, it's more notice than you get with incoming ICBMs."
Speaking of incoming ICBMs:
http://www.youtube.com/watch?v=4ZBRc0VtRiQ
No worries ... the US has a high-tech nationwide alert system.
When your phone starts buzzing, hit the ATM and then take cover.
ROFLMAO
Oh, better go to the bank right now........
Make sure to give them a phone call in advance to have cash on hand or they'll refuse you service for large amounts. Bank run bitches
I would like to think the markets are forward thinking. If they knew something was going to happen a week from now they would react now.
You're right. If such a meltdown were expected the stock market would stage a spectacular rally.
Mwa ha ha ha -- the 'cash on the sidelines' rally, as gas, food, ice and beer are bought with reckless abandon.
Econ 101, biTcheZ!
Perhaps the reason the markets are irrational seeming is because they are truely in the moment.
They reflect the perfect balance of want, need, greed and oversight or lack there-of at any given instance.
Th edistortions are ours. as is the irrationality.
ori
/this-that-and-the-4th-reich/
Given the players and all their tools, things are where and what they are because they couldn't be anything else?
Exactamente!
ori
Guns, Gold, and Girls... having the SHTF doesn't sound to bad if you're prepared. Sounds like EURUSD might go to 1.20 real quick.
Aaaah! the 3G network!
Upgrade to 4G, my man -- Guns, Gold, Girls and Ganja!
All four have been illegal in some form or another ... TBTB obviously fear one of the 4Gs... I wonder which is most dangerous. I tend to think women.
I vote for gold as most dangerous.
Half the world - the women -clamor for it.
Guns used to get your gold.
And gold buys all the ganja one could ever want.
Not so fast there Whimpy we got some pretty spensive ganja here.
Ganja just makes you loose your aim, and forget to reload, while thinking deep and stirring thoughts about stuff you realise doesn't matter, if you can even remember it, once you aren't bent any more.
Yep and aussie ganja is up with the best.
takes away the pain of trying to figure it all out.
Yani (as the Abo's call it) is old-school. Over the last ten years, more and more its speed and synthetic party-drug muck mixed with energy drinks and hard spirits. And it's number one characteristic is to turn polite and sociable people into destructive and self-destructive arseholes who spread misery everywhere.
I'm not a fan of any of it.
If so, can I take my girls to Europe for a vacay? I hate to leave my guns at home.
Sorry girly guns a no no in EuropeI will look after your guns n gold while you are away.
Guns and gold can be used to preserve your wealth and freedom. Girls, not so much.
Some of us girls have our own guns...
I love me some armed gurls. They usually do not take any shit either!
Don't mean to make it dirty, but I love it when a girl lets me do a little bump firing ...
Girls make your wealth and freedom worthwhile. Unless you are gay ... nothing wrong with that.
http://www.youtube.com/watch?v=9ild8w0rHQU
I'm not any gayer that you are, Shirley.
I'm prepared for the worst, that doesn't mean I wanna see it happen.
And can one every be prepared for the worst?
This shit is global now and might even turn into a WOIII in a few years.
Methinks the notion of being "prepared for the worst" is fallacy, as "the worst" is that place just beyond one's preparedness.
Yup!
I was laughing at this proclamation as well. The "worst" would be that you've pissed folks off and they can nod their heads to dump a nuke on your ass. Yeah, good luck with preparations for That!
It's about RISK. One can only gauge things based on risk, based on probabilities. If you prepare for the WORST then you're likely going to have unprepared for higher probability things: if your scopes are all pointed up monitoring for incoming nukes they you're likely going to be surprised to be overrun from people on the ground.
WWIII for sure. Only question is will it be conventional or nuclear? I figure the latter. Maybe the Mayan astronomers knew something.
christmas week meltdown bitchez
Wouldn't that be funny. I can see it now. CNBS HEADLINES: "JESUS HATES THE GLOBAL ECONOMY."
For sure ... we have to blame someone !!
He wasn't real fond of the money changers - read bankers. Only time he ever lost it.
In the Christian Bible they expect four horsemen to trample civilization at the end of the world.
Well according to Revelation 6:5-6 one of them is an actual banker. The only one of the four with a recognizable occupation: Futures trader.
Look it up of you don't believe me.
Obama to star in the role of the Little Droner Boy.
Geithner knows its coming, Why do you think they pushed up the US Treasury auctions to next week. When was the last time the US had back to back weeks of full blown debt auctions?
Fed will step in
I concur.
Bernanke will keep interest rates at 0% and print money in accordance with his strong dollar policy. Hell he may give away the printing plates.
Give away the plates? You mean like the way Harry Dexter White did after founding the IMF with Keynes?
Fed can step in then step out, then shake it all about. Matters not.
It's not going to help.
Just kicking the can for a month/week/day/hour, they'll keep it up until the end.
Teh Burnank can raise interest rates in 15 minutes...
redpill,
Fed will step in
Already have in IT.(Plural)
I don't know if you do requests, but can there be a post on how to profit (even on paper) once the printing presses start? Obviously keeping money tucked away in physical assets would be sound, but the printing presses are going to start sooner than later, and I imagine there will be a lot of opportunities for significant profit..
gold coins from the late 1800's as well as Morgan silver dollars because they are artwork, artwork from Sam Colt, William Ruger, Smith and his buddy Wesson, and lead, and brass are my favorites, creations by Sara Lee, Marie Calendar, etc., and water works as well.
"creations by Sara Lee, Marie Calendar, etc., and water works as well"
Seems that, like most Americans, you might want to consider re-evaluating what you consider to actually be "food." Hint: if it's made from flour (let alone GMO'd white flour) and packed full of preservatives and high-fructose corn syrup, then you're probably better off not eating anything at all (I should, however, mention that while fasting can lead to incredible resurgences in energy, stamina, immunity and mental clarity, it can take a week or more to adjust and get into "fat burning mode" - ketosis - and you'll need a lot of pure drinking water to facilitate the process and help with the detoxing).
i was reading your post and i thought to myself again....
' i gotta get fit'
If the Tylers are taking requests I'd like to hear Freebird.
Be careful what you ask for:
http://www.youtube.com/watch?v=IOMlX7jaQBs
Hey! That's not Freebird!
It was funny for about a minute but as someone who likes both Freebird and say, The Rocky Horror Picture Show, I have to conclude that the stereotyping is way off base.
Rocky Horror Picture Show? Mmm, I'm thinking more along the lines of Joe Dirt.
That would be just the kind of inaccurate stereotype to which I referred.
long wheelbarrows.
Deep ones, too. :D
Yes indeed. You vultures always find ways. Like the lead in "Gone With the Wind," you know that there is more to be looted in the destruction of a society than in its construction. Now that your friends on Wall Street are in the ascendancy, this is only to be expected. There are a lot of your contemporaries on the internet offering ways to prosper on other people's misfortunes.
I'm not an investment expert, and I'm certainly no Tyler, but it is my general understanding that when the Fed prints the overall market goes up. So ask Uncle Ben to give you an anonymous tip up the day before they print - that part is critical. Give us all the heads up, then go out right away, and, in order to expose yourself to the general market, buy an S&P ETF, e.g., Vanguard VOO. Then, after two or three days of green numbers in the tripple digits, sell for a nice profit. Optional: then, go to Costco with your earnings and buy as many 25lb bags of pinto beans and rice as you can store in a cold dry place, and if you live in the SW you may want to pick up 55gal drum or two and proceed to fill with water. "Put your trust in God; but mind to keep your powder dry."
we are so fcked. Even if we solve this financial crisis, we've passed the tipping point of exponential decline in the arctic ice shield, and it's become a positive feedback loop.
http://www.independent.co.uk/news/science/methane-discovery-stokes-new-g...
man-made climate change may be the 6th extinction event for the planet. specie extinction:man.
Riiiiiiight. Because global warming isn't a farce. [/sarc]
The fact that the UN says that the sun has NO AFFECT on Earth's climate says it all. No, it's that evil gas called CO2...What humans exhale and plants breathe...
Mars has warmed too over the last century. We must be exporting CO2...
To be utterly convinced that global warming is not a problem is every bit as stupid as being utterly convinced that it is. The truth is that we don't know for sure.
This is usually the best way to tell idiots from smart people in any debate: Not by which views they endorse, but by whether they're a hundred percent committed to one side of the argument or not.
The problem with global warming is not whether it's true...it's the fact that market-dislocating policies are implemented under the guise of global warming irrespective of whether it's true.