Krugman Pans Obama Admin's Stress Tests
With the banking industry suffering from a crisis in confidence as much as liquidity, Paul Krugman says the Treasury Department will likely sugarcoat the stress test it is applying to the banks so that all of them are deemed solvent.
"This stress test, I have to say, it is sounding like a class of self-esteem: 'You are all wonderful, each in your own way,'" said the Nobel Prize winning economist. "I don't think they are going to let anybody fail."
Appearing on ABC's This Week, Krugman was prompted by a remark from host George Stephanopoulos, who noted that the political (and actual) capital being afforded to the Obama administration was running out.