re: The Fed is still doing its job!

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So, your idea of a free market is one where the central bank shuts down one of the largest 19 currently viable banks in the country just because it does not do well on a "what if" scenario/model designed by confessed tax evader Timothy Geithner, even if some or all of the "what if" assumptions never take place?

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Once again, well said

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Russian, you're freaking hilarious.

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Thanks! That's what I live to hear!

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I don't think you should be calling out Rivers based on what you said above.

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I wasn't calling him out. I was trying to help him understand what I was saying. I thought I was playing nice.

Finally!! An intelligent, well-thought out response!
Thank you, igoringa!

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cant it be said that doing a stress test exercise period, is not their job...

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In a word, yes.

I personally think the whole stress test exercise is a case of "We've got to make it look like we're doing something!" (Of course, this is the Department of Treasury I'm referring to here, not the Fed Reserve, since it's the TD which is modeling the stress tests.) Typical politician-speak. I wish I knew for sure, and it may come out in the future when the participants leave their government jobs to write books about this whole episode, but I'd bet that most of the usual suspects greatly regret ever going down this "stress test" road. It is a major SNAFU, IMO.

In the meantime, I think the Federal Reserve is trying to limit the damage done by the whole exercise. Hence, the Fed's announcement of, to the effect, "You go ahead with your games, Secretary Geithner, but just be informed that your silly little exercise will not result in any systemic bank being shut down just to make it advance your political objectives. We will make the decision to close banks based on circumstances when they happen, and not when you finish with your computer models." That's my opinion on it.

What amuses me is that the Federal Reserve, in its normal bank examinations, does stress tests routinely. So, what's the point of political appointees announcing they are going to do it now? Just for headlines and for the appearance that they are on the job. As for as I'm concerned, it's all a pile of bullshite.

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Just for headlines and for the appearance that they are on the job. As for as I'm concerned, it's all a pile of bullshite.

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Only amsterdam actually believes they are useful. It's pretty funny how they backed themselves into a corner on this one IMO. I also think it is worth pointing out, for the millionth time (not directed at you specifically) that "not letting an institution fail" and "wiping out the common stock" are not mutually exclusive events. The same could be said for those holy debtholders that said foreign-port is so afraid of harming (casually ignoring the fact that, you know, this has already happened to WAMU).

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foreign-port

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I'm not familiar with that term in this context. I even Googled it and all I got was the Army Corps of Engineers working with foreign sea ports. A little help, please.

Oh, frick!! I must be tired. That went completely over my head!

And I've even worked in Amsterdam!