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Europe Banking Lies Coming Unglued

A group of German banking associations to EU banking officials conducting ‘stress tests’ to see how many European banks are in trouble:  “Given the tense situation which already exists in money and capital markets, we believe publishing the results with the present level of detail would exacerbate the sovereign debt crisis.”

Translated into English that means, “If the public ever finds out what a mess we are in, they will panic.  So shut up.”

When the financial crisis broke out in 2008, Europeans lost no time attacking savage “Anglo-Saxon” capitalism and US regulatory cluelessness for the world’s troubles.  (Fair point on the cluelessness and throw in a bit of corruption as well.)  But Europe’s cosy club of banks linked to or owned by governments was equally mismanaged and now threatens the world with an even worse meltdown.

European bank regulators have shocked these cosseted pet banks by putting them all through at least a partially meaningful stress test (unlike last year’s shambolic exercise); at the moment the banks are screaming in rage and pain, denouncing the bathroom scales for making them look fat, and demanding that they be allowed to weigh themselves on a new, more humane set of scales.

Pathetic, and frightening.

It’s time for the truth to come out.

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