Fed Orders New Round of Stress Tests

[cieldumort]

With concerns rising that a default within the EU could be a "Lehman event" for Europe, the Fed has come up with fairly vigorous stress tests for potential fallout on the largest US banks and other institutions. The new tests assume an initial quarterly drop in GDP of 8%, and a U3 unemployment rate that increases to 13% within two years, an

Comments

[cieldumort]

Where do you see that?

[cieldumort]

Well, they're merely discussing the official U3 rate, yeah, and not the "real unemployment rate," which is probably somewhere between 16% and 20%. The unemployment rate, however one calculates it, should always at least count only those people who are legally/physically able and want to work.