You might have noticed that the results of Timothy Geithner’s “stress test” of American banks was released today. Mish summarises the results in plain language.:
Fed Determines Banks Need $74.6 billion in Fantasyland Scenario, $599 Billion in Cakewalk Scenario
”The results cannot and will not provide "considerable comfort" because the stress test parameters were a cakewalk. . . The banks were insolvent and many still are. The Fed has thrown $trillions at this mess and the banks remain short of capital. If you are depending on research from Fox-Pitt Kelton Cochran Caronia Waller, you need a new analyst.”
2 comments:
PC
They all rely on fractional reserve banking. They are rely on the Fed to prop 'em up. Hence they are all insolvent. That hasn't changed.
LGM
None of the US banks are insolvent at the moment LGM. In fact they are good buys.
Don't listen to those with ideological axes to grind. They are quite wrong.
I am quite happy for them to continue with the line that all banks are rubbish and a currency crisis is looming though ;-)
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