NewsFlash: The Continued Bloodbath in European Economies & The Upcoming Bank Stress Test
Reports are coming through that economies in the Eurozone are in worst shape than previously thought. This means that everything done so far seems not to have worked, yet. The worst off seems to be Germany because no one wants is buying their products. This is especially worrisome because everything (including throwing the kitchen sink)) is being done and yet nothing seems to be changing.
This is also the week that the results of the Stress Test by the nineteen major banks in the United States is set to be announced. The initial reports I have seen is that Cib and Bank of America are going to fail. The banks should have been nationalized months ago. I view the Swedish Model as the way to go to get everything back in shape and up and running again. As the write-downs continue, the bigger problem is what the world is going to do with the reduced borrowing that will prevent the consumption driven economies from driving growth. What will all these export-led countries going to do? Japan is just one example. Japanese are now turning to the Communist Party in droves because of the calamity faced by the Japaense Economy.
The suffering is set to continue. When it ends is not clear. Some continue to believe that the bottom is near. I hope so.
This is also the week that the results of the Stress Test by the nineteen major banks in the United States is set to be announced. The initial reports I have seen is that Cib and Bank of America are going to fail. The banks should have been nationalized months ago. I view the Swedish Model as the way to go to get everything back in shape and up and running again. As the write-downs continue, the bigger problem is what the world is going to do with the reduced borrowing that will prevent the consumption driven economies from driving growth. What will all these export-led countries going to do? Japan is just one example. Japanese are now turning to the Communist Party in droves because of the calamity faced by the Japaense Economy.
The suffering is set to continue. When it ends is not clear. Some continue to believe that the bottom is near. I hope so.
Mike Pouraryan
