The stress test reduction is indeed nonsense and ineffective. Why do they do that?
They get so much flak on it that they want to be seen as ‘proactive”. But they will not react until the banks scream louder. Banks are losing tons of money on the safest bets and must get into tough deals to make any returns. The government will not move, if you and I scream. We are getting closer to the banks screaming. The grape vine is that the new stress test will be another half a percent lower before October.