Tests Put to the Test
Financial stress testing is becoming a political issue (see “Bank objections delay strest tests” and “BofA and Citi in last push on stress tests”, Financial Times, May 1, May 3 2009). Accordingly, the very problem of the release and usage of the results of stress tests is put to the test: a leak to the media is, in a way, a sort of a political experiment (see subsequent blogging by Brad DeLong, John Hempton, Yves Smith and Paul Krugman). The polity of testing is a very serious thing (even in finance). Will stress testers end up appointing test diplomats?
(Or test political commissars.)