Raúl Ilargi Meijer has a post which should induce a good amount of scepticism about the results of the official bank stress test. The Swiss test did indeed find out that some major Dutch, French and German banks could be in trouble in a crisis.
Wouldn’t it better to let an independent bureau do these tests, instead of the ECB which obviously has huge political skin in the game? Or are we all too afraid of what might come out?
Will the markets actually feel more confident, or are they going to fake that too? Was this really a yearlong audit, or did it only take that long because the spin doctors needed to make sure the lipstick was applied correctly on the pig?
We all deserve better than a yearlong exercise in futile tepid air. But Europe’s taxpayers deserve it most of all.