Manifestor

How Will Markets React to Monday's Stress Test Results?

What about the reduction in volatility? That I think was the primary benefit of the stress test. The six months for the banks to improve their capital ratio gives even more time during which the consumer, business and investor confidence can stabilize/improve. My opinion is that, by the time the next earnings season kicks in for the banking sector, the stress test and its action items would be forgotten history since all banks would claim adequate capital and growing business.

Bottom line, IMO, stress test is the classic 'placebo' pill to calm the trading public.