from Armstrong Economics:
For those of us in the real world familiar with real live trading, there is a huge difference between theory and reality. I was invited by a very well-known university to observe a program pilot designed to train people to trade in banks funded by banks. They rented a hotel and took many rooms with each room set up as a pretend bank dealing desk. The professor would then control the screens and pretend to be the central bank. If the students did not respond according to theory, they failed. I was speechless that the banks funded this project and it was just a joke.
Well, welcome Bank Stress Tests. You will not believe how they are designed. You guessed it – on theory. The people who designed this fiasco are again void of trading skills.
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