Impotence defined - 1.3240 is the new EURCHF level at which the Swiss National Bank can only stare, dread and do nothing about. At least the USDCHF has slowed it descent to parity as all of Europe is scrambling to shift its deposits out of local banks and into those of Switzerland. Patience - there are two more days before the LTRO termination, and we may see some real fireworks in the next couple of days as we may witness an unprecedented rush to relocate bank assets. We would not be surprised to see a 1.2x handle in the pair. Elsewhere, there is a true bloodbath in European CDS again, not so much in the usual whipping boy Greece, but Spain, Hungary, and Italy. The shotgunning of risky credits, er, sovereigns has begun. Oh. and remember that "stress test" that was supposed to restore credibility? According to reports Deutsche Bank, Commerzbank, and BayernLB, whose combined assets are likely multiples of Germany's GDP, have passed the stress tests. And nobody gives a rat's ass. Geithner's credibility restoring propaganda plan has now suffered massive failure.