Stressing Over the Stress Tests …

Seems as though a panel of Federal investigators is now suggesting that we may need a second opinion on those stress tests!

According to a new report from the Congressional Oversight Panel, Washington’s initial assumptions might have been just a wee bit too optimistic.

Gee, really? You mean assumptions like an unemployment rate of 8.9% … when May’s rate just hit 9.4%. … might not be accurately conveying the potential for damage to our system?  

And let’s not forget that even under the original stress test, half of the banks needed more money! 

From the looks of it, Mr. Market is a bit upset with the news, as well as the TARP repayment plan.

Nilus

P.S. I also wanted to note that I recently revived my other slightly less formal blog, in case you’re interested in getting even MORE market commentary from me!

1. Interesting note on preferred bank stocks … I devoted the cover story of the March Dividend Superstars newsletter to preferred shares, and in a follow-up this past month,...
2. A heads up on my Twitter account … Just wanted you all to know that I am now officially “tweeting” — i.e. using my Twitter account to send...
3. The latest Bank of America news … Bank of America (BAC: 15.05 -0.08 -0.53%) is down sharply today on rumors of additional bailout money from Washington. While...