The nation's 19 largest banks are currently being tested by the administration to see if they can withstand the worsening conditions in the economy. Hopefully, by early May these results will be published for the public to see. These stress tests will include different types of scenarios such as rising prices or rising unemployment rates and will see how efficiently the banks are able to react.
I think we all know how bad things are right now but I think this will definitely open up some more eyes and prove exactly how rough it could get if the problems continue to grow. The administration, from the sound of this article, seems fairly confident that not only can our country handle whatever our future holds, but our people can handle the truth. This should be a very compelling set of results and I hope everyone looks out for this and keeps themselves updated in the coming weeks.
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We actually discussed this article today in my Business and Ethics class. I think the stress tests for banks are a good idea as well and I believe America can handle the answers. This is also an ethical issue as banks are having a very hard time and need to somehow make money just like the rest of us. These banks cannot simply loan money to every company that needs it. Also, in order to survive, banks are starting to ask for 30% interest on their loans, which many may say is unethical.
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