{"id":680,"date":"2014-10-26T19:25:52","date_gmt":"2014-10-26T23:25:52","guid":{"rendered":"http:\/\/olduvai.ca\/?p=680"},"modified":"2014-10-26T19:25:52","modified_gmt":"2014-10-26T23:25:52","slug":"the-scariest-number-revealed-today-1-114-trillion-in-eurozone-bad-debt-zero-hedge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=680","title":{"rendered":"The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt | Zero Hedge"},"content":{"rendered":"

The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt | Zero Hedge<\/a>.<\/p>\n

As we previously reported, the ECB’s\u00a0latest stress test\u00a0<\/a>was once again patently flawed from the start. Why? Because as we noted earlier, in its most draconian, “adverse” scenario, the ECB\u00a0simply refused to contemplate the possibility of deflation<\/strong>. And here’s why. Buried deep in the report, on\u00a0page 75 of 178<\/a>, is the following revelation which contains in it the scariest number presented to the public today.<\/p>\n

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Due to the fact that on average banks’ internal definitions were less conservative than the simplified EBA approach, the application of the simplified approach led to an increase in NPE stock of \u20ac54.6 billion from \u20ac743.1 billion to \u20ac797.7 billion.\u00a0The CFR and the projection of findings led to an additional increase in NPE of \u20ac81.3 billion, resulting in a total increase \u20ac135.9 billion to \u20ac879.1 billion of post-CFR NPEs across the participating banks as a result of the AQR<\/strong>. The impact of the application of the EBA simplified approach and the credit file review on the stock of NPEs varied amongst debtor geographies, with overall increases among SSM debtor geographies ranging from 7%\u00a0to 116%.<\/strong><\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt | Zero Hedge. As we previously reported, the ECB’s\u00a0latest stress test\u00a0was once again patently flawed from the start. Why? Because as we noted earlier, in its most draconian, “adverse” scenario, the ECB\u00a0simply refused to contemplate the possibility of deflation. And here’s why. Buried deep […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[60,202,233,282,285,353],"class_list":["post-680","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-stress-tests","tag-deflation","tag-ecb","tag-european-central-bank","tag-eurozone","tag-gdp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=680"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/680\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}