The Great Republican Hope

[hi_im_god]

Originally Posted by dalakhani

Its such a bullshit. The stress tests were about the dumbest thing you could do. First of all, there wasn't enough stress. Second of all, the bogus results were a false signal of a bottoming out.

Wells fargo, b of A and citi are in no better position now than they wee 120 days ago.

actually, the dumbest thing was changing accounting rules away from mark to market so that bank balance sheets can now be what they imagine an asset will be worth when things are all better vs. what the market tells you it's worth.

i'm not an accountant and i don't have a fully developed grasp of the issue but other than "it's a category 5 sh*t storm if we don't do this", i haven't seen a good explanation for why imaginary numbers are better than real ones.

i don't know how anyone can have any faith in the numbers coming out of financial institutions after this. they're basically made up.