“The purpose of the stress tests is, in essence, to persuade us that the banking system is in good shape on the basis of a make-believe exercise which purports to show what might happen in the event of a supposed severe stress scenario as modelled by a central bank with a dodgy model and a vested interest in showing that the banking system is in great shape thanks to its own wise policies. … All the stress tests provide is employment for modellers and false risk comfort for the public.”
Read the full article on: The Cobden Center (UK)