Should this assessment turn out to be correct, Obama and Geithner are going to have serious problems. Nobody likes being lied to repeatedly and there appears to be more in favor of this reality as opposed to the Geithner "all is well" reality. Look at the recent banking history and look at the latest cash injection into UK banks and tell me we're not going to see more problems ahead. Geither (and Obama) put a lot of skin into this continuation of Lord Paulson's pro-Wall Street plan. Seems like a risky approach but we'll know more in a few months time. Yahaoo! TechTicker:
"It's in the interest of the financial community to send this propaganda out," Black says. "It's remarkable not that they do it but that it still works."The video is inside the link and goes into much more detail including examples of much more difficult stress tests such as AIG's last year. That too turned out to be a complete, pathetic joke. It sounds doubtful that the American public will tolerate one more lie of this sort but if Geithner wants to bank his future on the banks telling the truth, go for it.
In other words, this isn't the first time we've been told "the crisis is over" and that "banks are well capitalized" - and probably won't be the last.
The professor and former financial regulator foresees another wave of foreclosures and future bank losses of more than $2.5 trillion vs. the government's $599 billion estimate.
