FED orders Massive U.S. Bank Stress Test

In an unusual move motivated by fear- the FED is ordering 31 banks to undergo yet another round of stress tests.

Only this round of stress tests will use severe scenarios, with parameters such as an unemployment rate of 13% , an 8% fall in GDP and a 52% fall in stocks from Q3 2011 to Q4 2012. In addition, the six banks facing trading tests, according to a Reuters report, will confront price and rate movements that occurred in the second half of 2008, as well as "potential sharp market price movements in European sovereign and financial sectors."

Now the FED was clear to point out that the tests do not represent its outlook for the economy- but let me ask this question.....

Why put 31 banks through all this unless they think this is a probable scenerio? I think the FED does see the economy going down the toilet. They just don't want to be the one who starts the panic!

This is alot of trouble to put a bank through- and this will be the third time too. Good thing these banks did not start lending again after all. And while the FED is awful concerned about the damn banks- they don't seem to give a hoot about us!

Are you ready for 13% unemployment? 8% drop in GDP? 52% drop in stock prices? Take a hint from the FED- get ready!

http://www.advisorone.com/2011/11/23/eurozone-fears-drive-us-bank-stress-test

Well, we better pick a good Republican candidate, because if those predictions are true or even close, the republican will be the next pres.