"...The long waited stress test of the 91 of Europe's largest Banks resulted in just 7 of the smaller regional banks failing the test including one from Germany and Greece, and five in Spain, that require capital injections of just Euros 3.5 billion, which is a drop in the ocean when compared against PIGS sovereign debt of Euros 1.2 trillion, but off course the so called stress test FAILED to test for sovereign debt default.
The banks were tested in their ability to primarily withstand economic contraction of a mere 0.4% which is less than 1/10th that of the recession of 2008-2009, which would have and did wipe out ALL of Europe's banks demanding capital injections and unprecedented tax payer support.
On the basis of 7 banks failing at 0.4% GDP contraction implies that even a mild recession of 2% would in reality see as many as 35 banks fail. Therefore the stress amounts to white wash to try and mask the truth that approximately half of Europe's banks would have FAILED a REAL stress test, requiring at least Euro 120 billion of recapitalisation..."
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