Showing posts with label banking. Show all posts
Showing posts with label banking. Show all posts

Thursday, May 7, 2009

Don't Believe the "Good News Bulls"

According to this New York Times article, U.S. Says Ailing Banks Need $75 Billion, US Banks need $75 Billion in additional capital in order to pass the government stress tests and this is good news!?  First, it is not good news.  It means that US banks need a lot of additional capital.  Second, it is not even accurate.  According to Gary Shilling we should not be trusting the rosy government reports as they are really meant as a PR piece then they are a measure of the banks' financial condition.  I agree.  The government stress tests are a joke.  Regardless of these phony stress tests most large US Banks are insolvent.