Expedite the Issuance of Resistance Testing

rusman — Wed, 21 Jul 2010 13:24:18 +0000

Do not keep dry finish. On the contrary, since the turmoil began in Greece, returned mistrust and markets were closed for liquidity. Nobody pays anyone because they have reason to believe that hidden problems, or failed investments. French and German banks hold most of the Greek debt, but most investors are suspicious for Spanish banks by assets (loans and houses) that are on their balance sheets. The drought threatens to shut down interbank lending to banks and therefore companies, which would paralyze the economy. Although Spain is reducing its dependency rate on foreign credit, you still need that foreigners will pay 5% of what businesses demand.
To break this situation, the Spanish government asked the EU to accelerate the publication of resistance testing or stress testing of banks. These calculations show how to support the capital and solvency of a bank an adverse macroeconomic scenario.
GLOBAL ECONOMY:
Ronald Reagan and Margaret Thatcher set up a stage which summed up the economic policy for 30 years, a clear theme: “more market and less government.” Crisis came in just over three years, everything changed. The State had to come to save the markets. The orthodox International Monetary Fund (IMF) unearthed the much reviled Keynes, some postulated employer a break in the market and the bankers were “deaf ear” when politicians “swashbuckling” with that of the reorganization of capitalism, regulating new markets to put them “in waist.”
That stage is over. Even President Zapatero, after presenting a plan drastic cuts to ease attacks has been Spain, said: “We were going to reform the markets and we have reformed markets to us.” A year ago, banks were the problem, now the problem is the states (public debt). The great paradox is that this is a debt that governments were forced to build to save those same markets now attack them so strongly.
Economic policy is at a crossroads: the dilemma is not exactly market or state (although in the background come to be the same), but “austerity or growth.” “Adjusting the belt to reduce the enormous public deficit or persevere in the stimulus policies until economic growth returns to be sufficiently robust.” Germany has imposed that Europe chooses the cult of austerity, while the U.S. has decided to maintain the stimulus. The recipe to show more effectively mark the balance of power in the world during the coming years. There is no consensus between both sides of the Atlantic

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Expedite the Issuance of Resistance Testing