Europe Interbank Lending Rates Still Rising

The MSM has been spewing how great the European stress tests have been. How investor confidence has been restored. Well if that was the ultimate motive of the stress tests then they did succeed because it was all one big PR Hoax.

Again, as I have been posting over the last year, equity investors are generally the dumbest investors out there. So far the last week, they have been running up European equities like its 2007, but one only has to look at where the real money is invested.

European Interbank lending rates continue to rise. If the stress tests have in fact been successful, why then are the 3M Euribor and 3M Euro Libor rates still rising?

European CP rates are also rising. The Euro has been strong only because of speculative short positions need to be bought back. As soon as this short covering spree is over I see the Euro back down to $1.20.