In the previous post I praised the Fed's short-term liquidity facilities. Another program that I supported was the Treasury's Stress Tests (conducted by the Fed). Here is what I wrote in early 2008:
One of the key elements of the Financial Stability Plan is to build "Financial Stability Trust" by conducting "A Comprehensive Stress Test for Major Banks" and providing investors and the public "Increased Balance Sheet Transparency and Disclosure".
Source: www.calculatedriskblog.com
