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Fed Determines Banks Need $74.6 billion in Fantasyland Scenario, $599 Billion in Cakewalk Scenario

By Implode-Explode Heavy Industries

"The results cannot and will not provide "considerable comfort" because the stress test parameters were a cakewalk. In the so called "adverse scenario" the Fed concluded unemployment would peak at 10.3% at the end of 2010 and GDP would fall 3.3% this year. I think we see the unemployment rate at 9.8% by August and 11% by the end of 2009. The adverse scenario is my baseline scenario. The results are skewed from the start as the baseline scenario is pure fantasy."

Full post as published by Mortgage Lender Implode-o-Meter on May 08, 2009 (boomark / email).