A worst-case scenario is a concept in risk management wherein the planner, in planning for potential disasters, considers the most severe possible outcome that can reasonably be projected to occur in a given situation.
The book Worst Case Scenario Extreme Edition provides hands-on strategies for surviving an elephant stampede, a 16-car pile-up, a mine collapse, and a nuclear attack. Discover how to take a bullet, control a runaway hot air balloon, break a gorilla’s grip, endure a Turkish prison, free a limb from a beartrap, chased by a pack of wolves, or buried alive.
Alas, the book does not cover worst case Fed scenarios brought about by Fed policies.
Insight into Central Bank Thought Processes
The following video explains the way the Fed thought in 2006 and thinks again today regarding “worst case scenarios”
Please play the video. It’s a real hoot.
The alleged “stress tests” in Europe and the US are bogus.
Currently, the ECB believes Italy will never leave the eurozone and the EU cannot break up.
The Fed does not believe they have blown another bubble.
The interesting thing is the Fed is the very purveyor of bubbles. They do not see it and never will.
The result is bubbles of increasing amplitude over time.
Fed Uncertainty Principle