Eurozone gallows humour in song and verse
When Enron failed, it was revealed they had hidden losses off their balance sheet with SIVs, a Structured Investment Vehicle.
When Royal Bank of Scotland failed, it was revealed they used SPVs, Special Purpose Vehicle, to account for their subprime losses.
The Eurozone is planning to leverage up its existing bankout fund which covers existing and future losses. It has chosen to name this new version of the fund with the term SPIV, Special Purpose Investment Vehicle.
The Eurozone has carried out two banking stress tests to assure the rest of the world that its banks were sound and could cope with potential losses. The rest of the world was particularly concerned with how the banks would cope with losses on govt debt; This point was discussed repeatedly and loudly. Each time the banks were shown to be sound and that very few of them would fail.
On Monday's Newsnight that the ex head of the European Banking Authority was defending the credibility of the stress tests. They were rigorous and his people had done a good job. Did they account for Govt's defaulting on their debts? No he said the national supervisors had not considered this a scenario that should be modelled, a political decision that tied his hands.
The rest of the world can take a reasonable view that when the Eurozone publishes reports with deliberate evasions that it is not a reliable actor. It can take the view that the Eurozone is complicit in lying to its own citizens about the safety of their banks.
If I took such a view I might even think it was worthwhile selling my Eurozone holdings and maybe even go short. This is not the end of the crisis. Not while the rest of the world sees the Eurozone in such disarray.
On a more comic note, The Financial Times has come with a song for Greece, Athenian Rhapsody.
the Wall Street Journal has a song for Angela Merkel. It's a reworking of the classic Gloria Gaynor hit, I will survive!.
While National Public Radio has created a Broadway show tune about the wonders of the European Union.
When Royal Bank of Scotland failed, it was revealed they used SPVs, Special Purpose Vehicle, to account for their subprime losses.
The Eurozone is planning to leverage up its existing bankout fund which covers existing and future losses. It has chosen to name this new version of the fund with the term SPIV, Special Purpose Investment Vehicle.
The Eurozone has carried out two banking stress tests to assure the rest of the world that its banks were sound and could cope with potential losses. The rest of the world was particularly concerned with how the banks would cope with losses on govt debt; This point was discussed repeatedly and loudly. Each time the banks were shown to be sound and that very few of them would fail.
On Monday's Newsnight that the ex head of the European Banking Authority was defending the credibility of the stress tests. They were rigorous and his people had done a good job. Did they account for Govt's defaulting on their debts? No he said the national supervisors had not considered this a scenario that should be modelled, a political decision that tied his hands.
The rest of the world can take a reasonable view that when the Eurozone publishes reports with deliberate evasions that it is not a reliable actor. It can take the view that the Eurozone is complicit in lying to its own citizens about the safety of their banks.
If I took such a view I might even think it was worthwhile selling my Eurozone holdings and maybe even go short. This is not the end of the crisis. Not while the rest of the world sees the Eurozone in such disarray.
On a more comic note, The Financial Times has come with a song for Greece, Athenian Rhapsody.
the Wall Street Journal has a song for Angela Merkel. It's a reworking of the classic Gloria Gaynor hit, I will survive!.
While National Public Radio has created a Broadway show tune about the wonders of the European Union.