Comments on: Chart of the Day: Common capital vs TCE http://blogs.reuters.com/felix-salmon/2009/05/09/chart-of-the-day-common-capital-vs-tce/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Nic Fulton http://blogs.reuters.com/felix-salmon/2009/05/09/chart-of-the-day-common-capital-vs-tce/comment-page-1/#comment-1543 Tue, 12 May 2009 01:50:25 +0000 http://blogs.reuters.com/felix-salmon/2009/05/09/chart-of-the-day-common-capital-vs-tce/#comment-1543 The stress tests were never really about testing stress but mostly about putting confidence back in the market. From where I’m sitting it looks like it worked. There is still a risk that some unknown unknown might pop up and deflate the new confidence bubble, but for now it looks a bit rosier. What we all have to bear in mind is that black swan events may have low probability, but that doesn’t mean they can’t happen one immediately after the other. While banks remain ready to repeat the errors of the past, the problem is still there. I can’t quite see anyone really wanting to turn off the Wall Street money spigot, so risky lending is probably simply waiting for the encore.

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