Friday, July 23, 2010

7/23 11:45

Charles posted the query about the European bank stress test being the catalyst.  I don't normally play the news game, but I think he is right.  The market is definitely hanging on, almost like the FOMC meeting announcement.  Any thoughts?  Is is just a rubber-stamp over a pathetic situation over there?  It is due out 1:00ET.
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3 comments:

  1. BabuJuly 23, 2010 at 8:54 AM

    I think it's more of timing the news to support market movement whichever way that is for now.

    ReplyDelete
  2. AnonymousJuly 23, 2010 at 9:29 AM

    Steve

    I understand that one of the parameters of the test is to see if a bank can withstand a 20% correction in the markets. If things play out the way we all feel they will there all in trouble though I understand there banks are only allowed to lend up to 100% of there capital and the USA banks are allowed to lend up to 120%.

    Jack C.

    ReplyDelete
  3. Steve KotelesJuly 23, 2010 at 10:57 AM

    European banks are loaded with sovereign debt while American banks are loaded with mortgages and mortgage-backed securities.

    ReplyDelete

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