Good afternoon everyone. Due to moving and all the rigamarole that comes with the insanity of moving to another city, I haven't had a chance to film episode 3 of Transpicuous News.... and most of the material I have been enthusiastically screen shooting and noting and dissecting is now old news, lol.

One of the news stories that I have been following closely was the patently ridiculous ECB Bank "stress test" that was rolled out. Seriously a facepalm moment of epic proportions.

I haven't had a chance to write or record a video on this yet.... and then this article passed my desk (so to speak), and it clearly outlines a good portion of my thoughts on the whole circus.

I will add to this one thing: If you were to look very carefully into this "stress test" you would see the amazing slight of hand tricks that they have played to shuffle the books as best they can to at least attempt to make this all look legit. Portugal and Spain have openly been selling off their "bad banks", Italy has been doing the banking shuffle in a desperate bid to appear to still be afloat, and Greece..... well Greece is a shining beacon of the reality of financial and economic cheep parlor tricks that very clearly shows that "bond" "redemptions" mean absolutely nothing in the world of finance that creates new rules and alters the play books minute to minute to enable them to sweep as much of their dirty laundry under the carpet as possible. France and Germany are not far behind..... and ones needs to ask themselves what happens when their dirty socks and skid marked tighty whities start to spill out on the floor for everyone to see? Bundesbank much?

Just like the US bank Stress Test last year, the ECB book end is equally a joke. I will leave you with these final comments from Tyler at ZeroHedge:

The reason we bring this up, is because just after the latest "most serious, most confidence inspiring" stress test was revealed, that perpetual troublemaker, the head of Germany's IFO Institute, Hans-Werner Sinn, who relentlessly refuses to drink the European Kool Aid, pointed out something rather stunning. According to Bloomberg, in an emailed statement, Sinn said that "ECB avoided modelling a deflation scenario for southern Europe which explains why the capital shortfall was so small for many banks."

Additionally Sinn said that the change in relative prices that includes inflation in north and deflation in south is “unavoidable” if southern European countries are to regain competitiveness without euro-zone inflation. He added that regaining that competitiveness solely via inflation in north - something Germany clearly is not too crazy about - would violate ECB mandate. HIs conclusion: the AQR/stress test implied inflation for all of euro zone to prevent too many banks from failing test.

We will leave what the ECB implied aside for the time being, and instead merely focus on his claim: if indeed the ECB completely ignored to model deflation as a possible outcome, then it makes an even greater mockery of the ECB's pet "confidence building exercise" within the financial community.

http://www.zerohedge.com/news/2014-10-26/chart-crushes-all-credibility-ecbs-latest-stress-test

Read more: http://transpicuousnews.blogspot.ca/2014/10/ecb-stress-test-white-washed-math-and.html