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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (254303)	6/15/2010 1:39:09 PM
From: Perspective	Read Replies (2) \| Respond to of 306849

Well, what are you thinking here? I don't know about you, but my stops are pretty close to right here. Lots of resistance around, but it doesn't seem to be mattering right now. A few more points and SOX is even going to tag its post-flash crash high. Perhaps the credit market seize up is easing up? Quite nervous right now. I guess that's just the way it goes. Ya lose some, ya lose some more...<ng> BC

To: patron_anejo_por_favor who wrote (254303)	6/18/2010 7:53:36 AM
From: Smiling Bob	Respond to of 306849

"Hey babe, that rash ain't nuttin' " (Just speculation on these tests has them moving) --- Spain's Santander may top EU stress test results Germany's unlisted banks seen as among the worst performers By Simon Kennedy , MarketWatch LONDON (MarketWatch) -- Spain's Banco Santander and BBVA may be rated the two healthiest banks in Europe when the European Union publishes the results of "stress tests" in the coming weeks, while analysts say Germany's unlisted landesbanks could be among the weakest. EU leaders agreed on Thursday to publish the results of the tests no later than the second half of July after the governor of the Bank of Spain said he would release the results of tests on Spanish banks, whether or not there was an agreement. The tests are intended to gauge whether banks' balance sheets are strong enough to cope with another sharp deterioration in the economy. See story on the deal to publish stress tests. Spanish press reports citing government sources indicated that Santander (SIBE:ES:SAN) (NYSE:STD) and BBVA (SIBE:ES:BBVA) could be the strongest of the major European banks, but analysts gave a mixed reaction to the announcement. Shares in Santander rose 2.4% Friday and BBVA gained 3.8% as the pair outperformed most other European banks. UBS analyst Alastair Ryan said the tests are not a panacea and that without a significant portion of banks failing, the tests "potentially amount to little more than an empty gesture." "With customer spreads falling rapidly, 650 billion euros of wholesale funding needs, overvalued property and declining nominal gross domestic products, we would see little value in a credit stress test that major Spanish lenders all passed," Ryan said. Bank of America Merrill Lynch analyst Michael Helsby, however, argued that anything that improves transparency in the banking sector has to be a good thing. Under Merrill's own stress-test assumptions -- including a 10% drop in revenue, two year's of bad-debt charges at the same level as the early 1990s and a 30% loss on Greek sovereign debt -- listed European banks would need to raise around 11 billion euros, Helsby said. If sovereign debt conditions worsen and a 30% haircut was taken on the debt of Portugal, Ireland, Italy, Spain and Greece, that figure would rise to 22 billion euros, he added. "Where there is clearly a black hole, is in the German landesbanken. These are arguably some of the most geared banks in the world and wouldn't pass an unstressed tested let alone a stressed one, in our view," Helsby said. See archived story on Europe's unlisted banks. logo Copyright © 2010 MarketWatch, Inc. All rights reserved. By using this site, you agree to the Terms of Service and Privacy Policy