The Real Stress Scenario Will be the next Boom

Original by Moody’s analytics, 2013, 2 pages 

This summary note was Posted on

  • The 2014 severely adverse scenario with conditions similar to the Great Recession
  • Macro economic stress scenario: US came very close to a government default
  • Less understanding of how banks will manage their capital during the next economic boom
  • Booms encourage banks to chase volumes and revenues
  • High credit losses are observed when a severe recession follows on a surging economy