The bank stress test, of May 09

Subject: The bank stress test, of May 09 Tue May 05, 2009 11:39 pm

The resuts of the US bank stress test are going to be out soon. How will it effect the banks in SG?

The test is to simlulate whether the banks in US will have enough money in different scenarios, like if the loan defaults were increased by X%, would the banks have enough money.

If the bank stress test results are positive, will it really help move the economy? I don't think the end of this recession is in sight just yet.
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It's in the papers today, that the top 19 US banks have so called "passed" the stress test, and that none of them are at risk for insolvency. You might say the end of this recession is nowhere in sight yet, but it could be possible that the world's economy has hit rock bottom. Recovery is going to take a long time, considering the severity of this recession, which rocked the foundations of an economy, the financial sector. True, the end of this recession may not be in sight yet, but I believe we're slowly on our way to recovery.