WC Varones

Don't lend your hand to raise no flag atop no ship of fools

Stress tests? Don't stress!

You know those "stress tests" that Timmy the Tax Cheat and Zimbabwe Ben were going to do to see what banks are really sound?

Turns out they're not so stressful. The base case is for -2.0% GDP this year, and +2.1% next year. The downside case is -3.3% this year, and +0.5% this year.

Wow, so even the worst case is a mild recession and we rebound next year. So what's everybody all worried about? Go out and buy yourself a Lexus and a flat panel!

UPDATE: GDP is already running -6.2%, and the "stress test" worst case is still -3.3%. The stress tests are a cynical ploy by the Obama administration to give passing grades to failing banks as an excuse to keep giving them more taxpayer money.


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