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Now that’s what I call a stress test

HT Calculated Risk

3 replies on “Now that’s what I call a stress test”

The follow-on link to a WSJ article is also informative. I was one of many analysts complaining about the assumed modest property price declines in the stress test, and I used Ireland as an example. Ireland was far from the worst — some of the other countries had even less appropriate “worst case” scenario forecasts for property prices – particularly Greece – and this affected the results of the test quite dramatically.

http://online.wsj.com/article/SB10001424052748704719104575389251817348376.html

Looks like Jim Chanos will soon be a very rich man with his short bet on Chinese real estate and related assets.

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