Megatrends megatrade on the concept of money, loan and interest rate in national budget balancing inside EU bank crisis

Abstract

This Thesis studies EBA stress testing methods Basel I to Basel III and the current status of Euro Crisis in 2014. CDO´s or Credit Default Swaps were normal instruments of trade before euro crisis and Stress testing methods have been greatly enhanced to include all scenarios of economy to find out the extent of bad credits in banks. It was concluded in Thesis that euro crisis is much more than just Greek crisis today spread all over Europe and that euro crisis will according by Thesis continue to be a decade long event. In Thesis it was also noted that all problems for euro could have been avoided by more rigorous planning in the formation of euro. Probably then it would have become imminent that intake criteria must be high, for the good of the applicant currency as the euro crisis can not ever take place for an independent currency. It was also noted that China will have a crisis and massive lay-off´s in future. Downsizing Chinese production will mean 200 million reduction in workers.