So today is National Stress Test Day, or something. Today Fed met up with the heads of 19 banks to go over their results, like when you’re not doing so great on your spelling tests and the teacher pulls you aside to go over your work and figure out why you’re so dumb, except instead of going over that infernal “i-before-e” rule one more time in the futile hopes that maybe this time it will sink in, they’re telling banks how much more money they need to raise. We don’t get to find out who passed or failed (rumor has it that Regions got a big fat F, though), but only released details on how the tests were performed. It was not, as I may have posited in the past, a big Excel spreadsheet but apparently an actual endeavor. A meaningless endeavor, mind you, but at least the people doing it took it kind of seriously.
There really isn’t much exciting coming out of this, sadly. Of the 19 banks tested (those holding at least $100b in assets at the end of 2008), not a one will be allowed to fail. Geithner even went so far as to point out that we shouldn’t be judgin’ banks on account of how well or how badly they did on the stress tests, because they are all unique and beautiful snowflakes that must be preserved. Or something like that.
Timmay, seriously. What’s the point of giving a test if you’re just going to pass everyone?
Mark Dowling // Apr 24, 2009 at 4:35 pm
Not only does everyone pass but they get a medal for participating. That’s the American way… after all look how well it works in the school system!
Fartles // Apr 24, 2009 at 4:44 pm
He seems to have hair made of wool…
wild // Apr 24, 2009 at 7:45 pm
Timmay as good as said: he didn’t have a plan~~seeking the direction from said test results. Not a surprize at all that FAIL is the ‘now realized’ conclusion. Just knowing you have a problem is a first step.
wild;)
liberal // Apr 25, 2009 at 5:17 am
Many critics of the tests argue that the “worst case” macroeconomic scenario is to optimistic, or make related points.
But aren’t the banks themselves conducting the test? I would have thought the most important criticism is that they’ll cheat.
Jason // Apr 25, 2009 at 8:42 am
I had thought so too, but I had read in one article that the government actually ran it. So they totally cheated too, I just don’t know in which direction.
toshiro_mifune // Apr 26, 2009 at 10:45 am
Does anyone else think Timmeh is starting to look like Eraserhead?