Ok, look people. We told you that stress tests were a lose-lose. Pass the test, whatever, it's a government sponsored beauty parade and confidence in the system's ability to admit it has sham-esque elements is diminished significantly. Fail the test? Armageddon! (We like the beauty parade option better, but they both suck).
So, that wasn't enough for you. Fine. Will you listen to the Oracle?
Warren Buffett criticized the government's stress tests of 19 large U.S. banks for failing to account for strengths in lenders' business models, and said he would buy more shares of three big banks in the portfolio of his Berkshire Hathaway Inc.
"The question is whether the people conducting tests have a bunch of markers" to write down a variety of assets, requiring new capital, Buffett said at a press conference. "You get the impression from reading it there will be percentage whacks (at various assets). That is not a very sophisticated way of looking at it.