Monday, April 20, 2009

Stress positions

I can hardly wait. Two more weeks, and Treasury will be releasing the results of its stress tests of the banking industry. Maybe. Sort of.

I can hear it now: "We have completed exhaustive testing of the nineteen largest banks, and we are pleased to report they all passed. No details are available right now, but maybe in a month or two..."

In the meanwhile, the banks are doing their best to impress us with their "better than expected" "profits."

Yes, I had to do two sets of quotes in a row. Neither turn of phrase is what it seems, and judging by today's action on financial stocks, investors haven't been fooled.

When the "results" of the stress tests are "released," it will not be the credibility of the banks that will be evaluated, but the credibility of Tim Geithner and the Obama Treasury Department.

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