Yes stress test in the shadow of the chaos of Europe?

Evening of today, the European market is to start, was peppered selling is raging in Spain government bonds and government bonds and Italy (It is Day 3 = I wonder if the end soon).
Of course, European bank stocks also continued to yesterday, it began in fall continuously.
However, we have hit the bottom repulsion between 17:00 minutes to 16:30 Japan time.
Italy Bonds in the Bonds in Spain I am back somehow.
Italian stock market and bank stocks also back.
Volume swells in the stock market of Italy, bottoming out feeling comes in.
Euro is similar.

First of all, the cause of the decline of Italian government bonds of the last few days What.
Financial deterioration of Italy does not mean that suddenly transmitted.
Of course, there are concerns, but it does not exist in Italy, why suddenly become.

Speaking from the conclusion, the cause can be found in Greece.
“Also, Greece?”
Please do not think the.

It will be appreciated that the (private banks, insurance companies, and pension) holders of Greek government bonds, will attempt to hedge price risk.
Hedging techniques for its purchase of CDS.
But now, it’s been a problem, the difference has come out in the interpretation of default.
In other words, the rating agency if what you say Nantes “I’m not a default”, the discrepancy with the events of default of the CDS, unless’ s default, it is not possible to hedge price fluctuations in the CDS.
If it becomes, CDS So if not to qualify as default, the purchase of CDS does not play the role of hedge.
Torushe president has said, “the countries in the region if the government ignored the advice of the president that we should also avoid even those partial default of Greece, so that exposure to risk the financial stability” and.
As this occurs, the (possibly useless) instead of the CDS, investors will look for an alternative hedging instruments.
It is a Italian government bonds, and mean that the selling of government bonds in Spain, further and sell stock Italy, Spain stock, it becomes the selling of bank stocks.
Things like this, is said in the world of credit, but the truth is, the result before the announcement of the stress test, might be behind the lack of capital Bank of Italy.
Therefore, it might be easy to trick.
Because, this time, apparently, is because Italy has become the prey from Spain.
Person of the Bank of Spain is thicker capital from Italy.

Italy government bonds so was sold until more than 6% indeed, do we have too much.
It looks like you have become somewhat calm, but eventually, if you do not solve Greece, Greece the second, the third is only targeted them.

After all, would I have no solution it is convenient.
If you put off non-performing loans, that the secondary damage, tertiary damage is over, the Japanese, you should know better.
In other words, whether to default, Germany or to the assumption of debt.
Or, you can establish a mechanism for the euro withdrawal (= default) …

I think the impact on Japanese stocks, not so much.
Yesterday, I wrote in the comments, but it might be to expand the “try the upside again a break for a while”.
No, no, are you as soon as economic indicators in the United States.
Whatever the case may be, the conclusion might be correct not come out of range frequency rate … I.
Oh, to think of it, until the result of (but misleading this name is used here and there) stress test, I feel like there is no possibility of stock prices is reversed so much will.
Possibly, the decline of Italy this time, as described above, simply because there was a stress test if read too much into, market might be moved.
When is a pattern, and those that go up after the announcement test results, now, how this time!