Comments on: Bank Stress Tests: Major Sham??

By: Larry Doyle

Larry Doyle — Wed, 08 Apr 2009 20:07:12 +0000

I undersatnd what you mean about the Post, but there are actually some decent business pieces in there. A reporter named Crudele is typically pretty good.

The WSJ remains the Bible. They are broadening the product by offering soem sports and lifestyle stuff but the business material remains top notch.

By: Mountainaires

Mountainaires — Wed, 08 Apr 2009 18:47:44 +0000

They’re not going to release the results of the stress tests until they can figure out how to disguise the data, just like they do with BLS and CPI. This administration is dangerously close to imploding themselves. They’re colluding in fraud.

US to delay bank test results for earnings-source

But officials are worried about how the market will react to the stress test results if there is not a clear recovery path for a bank that is deemed to have a large capital need.

The last thing Treasury wants to do is set off a panic, the source said.

http://www.reuters.com/article/marketsnews/idINN0747118320090407?rpc=33

By: lizzy

lizzy — Wed, 08 Apr 2009 18:24:16 +0000

I wouldn’t trust anything in a paper owned by Murdoch. I watched the N. Y. Post go from a real newspaper when he took it over to a paper less valuable than toilet paper. I have been surprised to recently see articles posted from the NY Post. Have you noiced decline in quality since he tok over the WSJ? This level of government fakery is about what I would expect from the Obama administration. I just saw an article from Kiplinger Business Resource Center by Peter Morici called Business Gird for Depression. He talks about how inadequate the stimulus plans are to deal with our economic problems and the explosion of debt.

By: fiscalliberal

fiscalliberal — Wed, 08 Apr 2009 18:09:20 +0000

The new Elizabeth Warren Congressional Oversight Panel report is available today. I down loaded it and am about a third of the way through it. It has a lot of information and is understandable to a lay person.

She addrsses the Stress Test in section c: Assess the Health of Financial Institutions. She points out how it can be helpfull, but also asks is it sufficient. She wants to know if it is based on the VAR software which got the banks in trouble in the first place and if the test is to be done by the firms themselves or by Treasury/Fed People.

I would ask the question: why should we trust either as they were part and parcel of the problem we are not in.

One of the complaints made about the financial mess is that bank management did not have the understanding of a good risk analysis.

Which is why we need conservatorship or bankrupcy: to teach them and further management that it is important.

The good thing about experience is it gives you the test first and the lesson later.

By: Larry Doyle

Larry Doyle — Wed, 08 Apr 2009 16:20:20 +0000

Rupert Murdoch owns the Post along with the WSJ as well. Good question as to why other outlets do not have this and aren’t highlighting it.

I think this story is very meaningful.

By: fiscalliberal

fiscalliberal — Wed, 08 Apr 2009 16:07:41 +0000

The interesting question is: why the NY Post and not NYT or Washington Post.

Could be they want to send a message to Wall Street versus the Nation

I know nothing about the NY Post – is it a local rag and who owns it?