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Stress Testing ECB-Style

2

Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    wotsthat wrote: »
    Do the UK need to take an Iceland approach? How much government debt is yielding a positive real return - aren't the creditors screwing themselves?

    I didn't initially mean the UK should 'do an Iceland' but that Cyprus should. I just ran with what michaels was discussing.

    If I was in Cyprus or Greece or Portugal and not so lazy, I'd be organizing a 'hell no!' Party of non-payment.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Generali wrote: »
    If I was in Cyprus or Greece or Portugal and not so lazy, I'd be organizing a 'hell no!' Party of non-payment.

    I used to work for frequent short spells in a factory in Portugal.

    If the people that worked there are representative of the population they won't need much persuasion to shaft their creditors. The attitude was basically that if, on a Friday morning, they found themselves with €50 in the back pocket, half a tank of petrol and credit on the mobile 'phone they'd take the day off.

    I loved it. I used to work long hours when I first started but gradually started picking up the culture and found myself lingering most mornings over a 'Portuguese Breakfast' - custard tart, double expresso and water.
  • purch
    purch Posts: 9,865 Forumite
    Nothing beats a Portugese Tart and a custard breakfast :eek:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    purch wrote: »
    Nothing beats a Portugese Tart

    I agree but she might get a little spank.;)
  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    Er... did anyone take the stress test seriously?

    ( IIRC in 2011 I said cyprus would default, you thought Russia would bail it out just about no one thought it was solvent or that the banks were solvent)
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    tomterm8 wrote: »
    Er... did anyone take the stress test seriously?

    ( IIRC in 2011 I said cyprus would default, you thought Russia would bail it out just about no one thought it was solvent or that the banks were solvent)

    Why was implementation of Basle 3 postponed until 2018/9?

    G20 agreed that it was not possible for the banks to deleverage at the same time as Countries resolved their budget deficits.

    This story has some way to run yet.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Thrugelmir wrote: »
    Why was implementation of Basle 3 postponed until 2018/9?

    G20 agreed that it was not possible for the banks to deleverage at the same time as Countries resolved their budget deficits.

    This story has some way to run yet.

    Did they ever fully meet BASEL2, 2015 will probably see BASEL4 with yet another set of standards.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Did they ever fully meet BASEL2, 2015 will probably see BASEL4 with yet another set of standards.

    Its not the standards that are the issue, but the implications of credit contraction by the banks and the resulting fall in the money supply.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Thrugelmir wrote: »
    Its not the standards that are the issue, but the implications of credit contraction by the banks and the resulting fall in the money supply.


    So any capital adequacy rules are superfluous?
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Why was implementation of Basle 3 postponed until 2018/9?

    G20 agreed that it was not possible for the banks to deleverage at the same time as Countries resolved their budget deficits.

    This story has some way to run yet.

    It wasn't. It was agreed that it would be implemented in stages.

    It would be dumb to implement an agreement that would make most banks insolvent at a stroke of a pen.

    I don't think that Basel III will ever be fully implemented FWIW.
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