Fed’s Stress Tests Results Based on GDP Decline of 8.5 Percent; Atlanta Fed’s GDPNow Forecast Says GDP Will Decline by 46.6 Percent

KW: Last Thursday the FED released its much anticipated “stress tests” on the largest and most important banks in America. As the term implies, these stress tests attempt to reveal how the banks would hold up under a hypothetical “severely adverse scenario.” But this “severely adverse scenario” doesn’t even approach the economic damage already inflicted by the coronavirus pandemic. For example, the severely adverse scenario posited the U.S. unemployment rate peaking at 10% in the third quarter of 2021. But guess what? The unemployment rate is already 13.3%. But even more scary is that the Fed’s severely adverse scenario imagined a GDP decline of “8½ percent from its pre-recession peak, reaching a trough in the third quarter of 2021.” However the Atlanta Fed’s GDPNow estimate projects GDP to plunge 46.6% in the second quarter of 2020. More bulls..t to excite the casino we used to call the ‘market’. Froth and bubbles that will be repeated as lies for the masses to get sucked in.

maximum stress level

 

By Pam Martens and Russ Martens: June 26, 2020 ~ Yesterday the Federal Reserve released its highly awaited stress tests on the biggest and most dangerous

Source: Fed’s Stress Tests Results Based on GDP Decline of 8.5 Percent; Atlanta Fed’s GDPNow Forecast Says GDP Will Decline by 46.6 Percent

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