stress test secrecy game theory

Discussion in 'Chit Chat' started by dumb_mother, Apr 11, 2009.

  1. ok so why could this possibly be what the fed does... i know!

    mark-to-make believe inspires bank rally
    banks take rally to reissue massive shares +++$$$
    stress tests result half of banks failed them ---$$$
    but now banks claim they already raised needed money +++$$$
    problem solved- hooray hooray cumbayah.

    is there another line of logic i'm missing or is this pretty much how this hand will unfold?
  2. From George Slezak:

    If you loan a bank Fed Funds at .25% and have them buy Government guaranteed mortgages at 4.5%, DON'T YOU THINK THEY WILL BE PROFITABLE? The profitable quarter at Wells Fargo is just their taking advantage of free returns. IT DOES NOT MEAN WE HAD ANY REAL ECONOMIC GROWTH.