Wednesday, May 6, 2009

Need for another round of bleed-outs explains recent economic happy-talk

WASHINGTON/NEW YORK (Reuters) - Bank of America Corp has been deemed to need as much as $34 billion in additional capital, according to the results of a government stress test, a source familiar with the results told Reuters late on Tuesday. Bank of America spokesman Scott Silvestri declined comment. A possible $34 billion capital shortfall is certain to increase pressure on CEO Kenneth Lewis, who was last week ousted by shareholders as chairman of the biggest U.S. bank.

Tell us again how the "recovery" plan is working, Ben.  How many major companies have gone belly-up this week?  How many people have lost their jobs or have been made homeless?

(As I wrote this, a TV business-news anchor was posing the question of whether "the system is weaker than we thought."  Were "the experts" wrong again?  Not that it will affect Congress' willingness to follow their advice in goose-step.)