There’s been a lot of talk about the Troubled Asset Relief Program (TARP for short) as of late. The TARP, as you may know, authorizes the Department of the Treasury to purchase (or repurchase!) up to $700 billion of so-called “Troubled Assets” in order to shore up bank and bank-like company (somehow including the auto industry) finances. The Treasury has kept the TARP in the news by deciding it is time to sell its stake in Citibank.
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On June - 12 - 2009
Rortybomb, a blogger and financial engineer from San Francisco posted an interesting spreadsheet based on the stress test results. Hunting through the stress test results, he found a chart on page 6 with ‘Baseline’ and ‘More Advanced’ numbers. Since that’s enough to do a linear extrapolation (of course, with two data points that probably isn’t the most accurate way to do it… see his background post) allowing you to set your own estimate for worst case unemployment numbers. Read on…
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