All but 7 of 91 European banks passed the much-anticipated “stress tests” aimed at showing Europe’s banking system is sound enough to weather the continent’s debt crisis – an outcome that officials hoped would forestall further market turmoil. If financial markets take the view that the tests were not tough enough this week, then the exercise could make matters worse – and further expose the EU to charges that it has failed to rise to the debt crisis within its borders.
I read countless articles this weekend, spoke to a few analysts, skimmed the world wide web and discovered maybe one article that declared the stress test process a legitimate success. It was public relations at its best. I remain short EWP, but the bulls may want to run with this for a bit, we’ll have to see. I see many charts I like from the long side, fewer at this juncture that I like from the short side, but as we all know that can change on a dime.
Have great week. Premium Content here.