Euro Area

[Furunculus]

Oh please - a mere three banks got clobbered, all of them British. And that's probably because they are overexposed in CDS which makes investors particularly jittery.

I am somewhat satisfied that the new eurozone plan hammered out today talks of restructuring of debt. Organised restructuring, hurtful though it is in the short term, is the way to go.

AII

well that article was about how the euro fall had affected big british banks

but the stressless stress tests did affect european banks:

http://www.guardian.co.uk/business/2...-tests-default

however, as noted the fall was muted by the ECB acting as an enormous overdraft:

http://www.telegraph.co.uk/finance/c...some-time.html

re the point about restructuring - there really won't be much.

all that is really happening is a rolling over with longer maturities, which means greek debt as a proportion of GDP continues to grow, bankrolled as it is by the EFSF, which leaves the german taxpayer responsible for at least 32% of burden, £750 billion in other words.

http://www.zerohedge.com/article/fat...-angry-germans

lurving it!

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edit - sunday 24th:

Germans is getting a trifle fractious:

http://www.telegraph.co.uk/news/worl...lout-plan.html