Comments on: Secretive Bank Stress Tests Heighten Investor Stress http://moneymorning.com/2009/04/29/bank-stress-tests/ Global Investment News Fri, 25 May 2012 18:42:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Motivations Abound for Federal Reserve's Delayed Release of Bank Stress Test Results http://moneymorning.com/2009/04/29/bank-stress-tests/comment-page-1/#comment-6363 Motivations Abound for Federal Reserve's Delayed Release of Bank Stress Test Results Thu, 07 May 2009 16:18:09 +0000 http://www.moneymorning.com/?p=7108#comment-6363 [...] missing, unfortunately, is an assumption of how much additional capital would be necessary to facilitate credit expansion – which, in turn, would serve to fuel economic growth. That, after all, should be the [...] [...] missing, unfortunately, is an assumption of how much additional capital would be necessary to facilitate credit expansion – which, in turn, would serve to fuel economic growth. That, after all, should be the [...]

]]> By: Carlos Comesana http://moneymorning.com/2009/04/29/bank-stress-tests/comment-page-1/#comment-6362 Carlos Comesana Thu, 30 Apr 2009 18:58:12 +0000 http://www.moneymorning.com/?p=7108#comment-6362 The market is short of trust because the size, dissemination and actual value of the toxic assets is unknown. This makes the stress test lacking of reach and clarity of results. Actually if any large participant of the financial system goes under this will repercute very much on the others. The government continues to make expensive and inefficient topic interventions.Then, the cost of the general protection that a temporary nationalization could provide will be higher. The market is short of trust because the size, dissemination and actual value of the toxic assets is unknown. This makes the stress test lacking of reach and clarity of results. Actually if any large participant of the financial system goes under this will repercute very much on the others. The government continues to make expensive and inefficient topic interventions.Then, the cost of the general protection that a temporary nationalization could provide will be higher.

]]> By: Matt http://moneymorning.com/2009/04/29/bank-stress-tests/comment-page-1/#comment-6364 Matt Wed, 29 Apr 2009 16:41:16 +0000 http://www.moneymorning.com/?p=7108#comment-6364 Some, like Larry Kudlow, have suggested that we let the banks grow their way out of their predicament. Money doesn't grow on trees and would have to come from somewhere and that somewhere is from corporate earnings and private savings. Okay so banks make up their losses by going after corporate earnings and private savings, but what would they need to earn to get back to solvency? How about the equivalent of suppressing those earnings by 25% for well over a decade just to get back to even. Some, like Larry Kudlow, have suggested that we let the banks grow their way out of their predicament. Money doesn't grow on trees and would have to come from somewhere and that somewhere is from corporate earnings and private savings.

Okay so banks make up their losses by going after corporate earnings and private savings, but what would they need to earn to get back to solvency? How about the equivalent of suppressing those earnings by 25% for well over a decade just to get back to even.

]]> By: Bank of America, Citigroup Told to Boost Capital as Validity of Bank Stress Tests Are Called Into Question http://moneymorning.com/2009/04/29/bank-stress-tests/comment-page-1/#comment-6361 Bank of America, Citigroup Told to Boost Capital as Validity of Bank Stress Tests Are Called Into Question Wed, 29 Apr 2009 10:06:53 +0000 http://www.moneymorning.com/?p=7108#comment-6361 [...] To read his analysis, which appears elsewhere in today's issue of Money Morning, please click Bank Stress Test Report. The report is free of [...] [...] To read his analysis, which appears elsewhere in today's issue of Money Morning, please click Bank Stress Test Report. The report is free of [...]

]]>