Talking about US Stress Tests Leave Europe Banks Exposed – Financials * Europe * News * Story – CNBC.comPosted: May 10, 2009
CNBC writes that European banks will be left behind in recapitalization. Unlike the US stress test that set out clear objectives, framework, and deadlines, there is no major policy initiative to recapitalize banks in Europe. In my State of Economy (May) blog I noted that the effect of the stress tests has been to quantify the recession and define a bottom to the spiral. I’ve also commented that Europe will be slower to recover and the simple reason is that there is no quantifiable bottom.
Global money will flow to stocks in industries that are able to project a turn-a-round with transparency.