Whither The Supervisory Capital Assessment Program?
Does anyone remember "The Supervisory Capital Assessment Program"? We know. That's ok. Don't feel bad. The Administration has been quietly trying to get you to forget all about it for some time now. Just in case you need a refresher, the Program went by another moniker as well. The "Stress Tests."
We'd just like to refresh your memory to point something out. This from the Fed's white paper on the topic "The Supervisory Capital Assessment Program: Design and Implementation."
Yes, the "more adverse" scenario for unemployment is 10.3%. Digging a little deeper we find:
Note carefully footnote #3 in the context of this morning's news: Unemployment in U.S. Jumps to 10.2%, Payrolls Fall.
Given that the recession (we still call it that in the Zero Hedge offices even given the government spending fueled GDP boost) has stuck its head through the ceiling of (another) metric of the Stress Tests' "more adverse" scenario (which is the administration's Thorazined code for "worst case scenario"), doesn't this imply that the government "goodbankkeeping solvency seal" applied to every bank that took the test with a "PASS" stamp (hopefully not in red ink) is worthless at this point? (Were you fooled?)
So, when are the next round of revised Stress Tests, exactly?