Credible stress test inspires confidence
SHARE prices rose on the Dublin market yesterday. Abroad, famous institutions whose experts had spent the weekend analysing the state of the Irish economy sent out a new message. One headline summed up the advice of one of the most iconic, Morgan Stanley: "Investors 'should buy' Irish sovereign risk."
What had happened to force a chink of light into the clouds that hang over our economy and dampen down the speculation, at home and abroad, that we would be forced to default on our debts?
The answer is simple. The stress tests on our banks, reported last week, were credible.