The Fed's new bank stress test a la Europe is just smoke-and-mirrors, says Naked Capitalism's Yves Smith. The Fed doesn't expect the European crisis to as bad as 2008 - but in fact it's going to be worse. The banking systems in the U.S. and Europe are more concentrated than ever before, and advanced economies are in much weaker shape. The risk here is not a Lehman-like disaster. It’s a modern version of Credit Anstalt: a major bank failure precipitating cascading collapses.