A Dissenting Voice on "Stress Tests"

Of all the reactions to my piece this week on Tim Geithner, this post , by Mike Konczal at NewDeal 2.0 might well be the most interesting. Konczal, a financial engineer turned blogger, restates the case that the Treasury's stress tests, which I portrayed in a positive light, were an exercise in window dressing—an argument he and others originally made last spring. The new twist in the story is Konczal's reworking of bank losses on the basis of what he claims are more realistic estimates of...