US banks Stress tests indeed stressful! A new bubble yet to burst?

First the good news..

The US government stress tests have probably proved the best way to judge the health status of the nations biggest 19 banks.The results though surprising indicate that around $75 billion needs to be added to the banks balance sheets.

This news at least for now seems to be a breather of fresh air since now we have a number with us with regards to the approximate capital needed for the banks to survive.This capital will not only be helpful for the banks to maintain their daily operations as well as to make profits in the forthcoming quarter.

Now comes the bad news..

The capital necessary to avoid the banks to collapse might just overshoot the $75 Billion mark.This news comes fresh with the results that indicate the banks liabilities as far as credit cards payments are concerned.The worst case scenario might push this number to more than $85 Billion.However even this seems to be the tip of the iceberg.

Traditionally, banks just show the credit card liabilities on the balance sheet.These liabilities just include the payments due from card customers to the bank.The stress tests do not take into account the loans taken against credit cards which are generally not included in the banks' balance sheets.This number again runs into billions of dollars.

As a bottom line, increasing unemployment and rising credit card defaults will add to the existing woes of the economy which is still reeling under the catastrophic effects of the housing and credit market bursts...