Bank "stress tests"....EUrope had 'em, and they had 'em in the US of A.
They were mainly bogus, and none challenged the 'mark-to-fantasy' accounting of all the toxic assets [read: worthless, and less-than-worthless] being carried at conflated figures on their books.
My Aunt Fannie!!
Here's a picture of the 'ultimate' Bank Stress Test...a shuttered, failed, bankrupt bank!
- We have nearly one thousand 'troubled' banks ready to be carted off to the banking morgue in America. I haven't seen any estimates for EUrope, but the banks there are hollow as well.
What cannot be paid back, will NOT be paid back. When you're broke, you're broke
Sunday 7 August 2011
Bank Stress Test...........from Rico
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1 comment:
We had this same problem in Texas in the mid-80's. Waiting always makes it worse. Until we put the bad banks out of our misery, the market won't gain confidence that the bad news is behind us.
Close 'em down and let's get on with the recovery!
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