Europe has released its preliminary terms for the upcoming bank stress tests.
ZeroHedge has a good summary of it here, though the basic gist is that there are actually no parameters. It’s pretty vague. We don’t know what, for example, what kind of haircut will be assumed on Greek-owned debt.
So it’s a total joke, but you already knew that, and so did the market. The point of a stress test is to establish confidence, not undermine it. Anyone who thought stress tests were going to reveal gaping holes in the system wasn’t paying attention.
Meanwhile the euro — the newly hot currency favoured by folks like Jim Rogers and Robert Prechter — is making another big run, and $1.27 seems in sight.