Stress Test Unemployment Parameters Inadequate?

Posted: Fri Feb 27, 2009 9:07 pm

In reading about the "stress test" to be applied by Treasury to the U.S. 19 largest banks, one of the test parameters is said to be a worst case scenario that unemployment rises to 10.3%.

Today, it was announced that California unemployment has already risen to 10.1%. See: http://online.wsj.com/article/.....96559.html

Perhaps our ever competent Treasury officials need to revise their stress test parameters IF they are actually trying to do a real world analysis of the ongoing strength of large banks.