Here’s a quick 1-2-3-4 of Europe news for you this morning.
The Wall Street Journal is out blasting the European stress tests, arguing that holdings of sovereign debt among European banks were understated — a serious problem, given that sovereign debt risk is the big issue on the continent right now.
As for the poster child, Greece, the PM has done a mass firing and reshuffling of his cabinet in hopes of shaking things out of their doldrums. The finance minister Papaconstantinou will remain.
Meanwhile, PIMCO’s Andrew Bosomworth declares: “Greece is insolvent.”
And the euro is tanking this morning.