Here’s how on-edge the market and regulators are right now…
Last night, The Turner Radio Network, a white supremacist outlet run by Hal Turner, published what it claimed was a “leak” of the Treasury stress tests. They didn’t actually publish a document, just a summary and in short they said the stress tests showed the entire banking system was stunningly insolvent.
Zero Hedge says the leak definitely had a negative impact on the market as news of it started to spread — it’s being discussed heavily on message boards, etc — so the Treasury was prompted to put out a denial, saying they don’t even have the results yet.
Now just stop right there. In the past, there would be no way something from a kook outlet like The Turner Radio Network could force a response from Treasury. Well, welcome to the financial crisis of 2009.
So is there any chance that it was a legitimate leak? We’re sceptical for the obvious reason that we don’t consider the source to be credible. But beyond that, it just doesn’t sound right that there’d be a memo floating around out there detailing the carnage in the way Turner has described it. The whole thing will be designed and packaged in such a way to show that everyone’s fairly healthy, but that some might need a few billion here or there.
If there were data out there suggesting that the banks were trillions in the whole, we imagine it’s recorded in some obtuse, not-easily decipherable manner.