Yep...they only looked at good assets, and they only looked at the one good quarter any of these banks have had in more than a year (which only look good because the banks themselves were allowed to only report good assets and concoct arbitrary models to value bad assets), and they only looked at a relatively good outlook for next year's economic conditions. The entire thing is one big joke painted in rainbow colors by people wearing rose-colored glasses, and they call it a "stress test". Do they not understand that a pump job isn't going to make the banks any healthier?!?? Or do they just not care?
How would you like to be evaluated on your assets, like your house, and have them forget that little mortgage? You'd be worth a fortune with a signature, wouldn't you?
Now imagine you're on the hook for paper leveraged forty to one. All the govt wants to know is if you can make the payments on that bloated house, no matter what it is worth.
To enjoy a movie you have to suspend disbelief.
Not a company. Welcome to the new Disneyworld.
How long can this bubble last? Until somebody hollers the emperor has no clothes.