stress test secrecy game theory

D

dumb_mother

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?
 
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.
 
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