Federal Reserve Agrees 'Stress Tests' are a Sham

The "stress tests" were supposed to triage those banks worth saving from those which were already too far gone to save.

But as Nouriel Roubini, FDIC chief Sheila Bair, Nobel economist Paul Krugman, former senior S&L regulator William Black and many others said, the "stress tests" are a sham.

Well, they've been proven right.

The Fed said today that - instead of letting the insolvent banks fail - which is what virtually all of the independent experts are recommending (see this for example), the Fed will rescue all banks which fail the stress test.

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