Posted on 07/03/2009 4:25:12 PM PDT by FromLori
Calculated Risk illustrates what we already knew: the bank stress tests weren't nearly stressful enough.
The chart below looks at unemployment by quarter. The green bars are the "base case" in the stress tests (the most likely scenario, in the government's opinion). The blue bars are the "adverse case" scenario--unlikely but possible. And the red bars are what's actually happening (Q2 is a forecast).
The larger story here, unfortunately, is that the Obama administration continues to blow its credibility on the economy. By being too optimistic from the get-go, the administration is opening the door for critics and opponents who are already arguing that the Obama plan has failed.
Calculated Risk has a bigger version of the chart and more thoughts here >
http://www.calculatedriskblog.com/2009/07/unemployment-stress-test-scenarios.html
(Excerpt) Read more at businessinsider.com ...
“Hey, Look, The Stress Tests Really Weren’t Stressful Enough”
No. Really? You mean no one figured that it was a facade to take credit for bogus BS in the first place?
“Supporting the basic economic principle that one doesn’t buy discretionary goods when one doesn’t have a job, the absolute performance of the S&P 500 Consumer Discretionary index decreases when jobless claims increase.”
Yeah! What he said! (one of the other stories on your link about jobs) Like I said, the “frippery slope”
We have had a consumer economy for 20-30 years at least instead of a sustainable economy. IMHO. Things have been getting to where they are now for a lot longer than anybody thinks.
parsy, who if he is right means we are in for big changes in the US.
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