Lilguy

Chart of the Day: Common Capital vs. TCE

The purpose of the stress test, as repeatedly stated by Geithner, was to boost confidence in the US banking system. It was not about a "fair and balanced" assessment of their capitalization or solvency. The metric picked to show "confidence" was the one that allowed them to fare best.

In short, the confidence test was a con. The only real reason to have confidence in the banking industry is that Geithner & the White House have repeatedly stated they will not let large banks fail. Whether they have already or ought to soon is irrelevant.

Now, drink your kool aid, and be on your way.

Insider Trends in the Financial Sector

Either Karim does not know what he is talking about OR he is deliberately misleading readers of this blog. (He does not disclose whether he has a position in any of the companies he mentions.)

It may be appropriate to pull this contribution from this website.