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U.S. v. U.K. Cagematch Continues

Just in case you had not yet gotten your fill of the Cross Pond Classic, another event is introduced: The 400 meter stress-test hurdles. GO!

Analysts Olivia Frieser and Andrea Cicone concede the test is a "real one", in so far as the parameters - 12 per cent unemployment, 50 per cent fall in house prices and a six per cent decline in GDP from peak to trough - are reasonably demanding:
The assumptions seem severe enough to us and therefore the stress test seems real...
However, they note:
...if we were picky, we would say that they remain static tests, and that these assumptions are merely in line with the base case of our admittedly bearish economists.

The US and the UK stress tests have two very different objectives [FT Alphaville]