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Bryan Graham in The Guardian offers this more subdued reaction compared to Jason Gay in The WSJ on the performance of Mikaela Shiffrin of Colorado, at the Winter Olympics. She had the longest gap between a medal at the Olympics in skiing after problems at the Beijing Olympics not coming down half of the time. Shiffrin is shown with her thoughts about the loss of her father (aspects of PTSD following her fall and injury in Killington, Vermont, in 2024) who helped her train with no stress letting her be who she was. After several attempts she comes down to her favored event the slalom and after so many doubting her performance and skill focuses thoughts on the fact that she had all the skills, the tools, now it was just to focus on the period from start to finish and execute with precision. In the end after moving the goalposts forward with more than asecond to spare in her lead she simply cannot believe her eyes, a complete disbelief. It was about simply trying and focusing after building all the skills, and finally just turning up anyway after all the disappointments and  injuries and this does it all, says it all.  ...

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This BBC video on work-life balance and burnout shows the positive effects of walking to reduce stress and burnout. A South Korean businessman affected by burnout and chronic stress runs 10,000 kilometres a year. This has helped him improve health and train his body. It also helps him think clearly. He started doing this after several startups led to chronic stress and walking seemed a natural way out. It started with a4 hour run from Busan to the ocean in South Korea which he told friends he could do. This turned into walking tens of kilometres every day. He developed his own style and now shows people in South Korea how this is done.

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David Reilly warns that though the U.S. Federal Reserve's stress tests of U.S. banks showed they passed- including approval for dividends and share buyback- except for Ally Financial and Citigroup, this can be deceptive. True, the Fed used 13% unemployment and sharp drop in stock market prices as conditions. The problem is with capital ratios. The Fed used a leverage ratio of 3%. It should not be forgotten that the financial crisis of 2008 was caused by excessive leverage and risk. Tested on this measure the banks fail to achieve safe levels of leverage and risk. Under the Fed's highest stress scenario Citigroup ratio was at 2.9%, Morgan Stanley's at 3.4%, Goldman Sachs and J.P. Morgan at 3.8%- what ths means is that the leverage for these banks was at 26-29 times capital. Reilly raises the question- how is this so different than the leverage used by these banks before the crisis. The stress tests in the U.S. by the U.S. Federal Reserve are lauded for being better than the European Banking Authority's stress tests, but is this a standard by which to judge them? Before the collapse of Lehman in 2008, experts including Anil Kashyap at the University of Chicago, pointed out that for every $1 of bank losses in a deleveraging cycle bank lending goes down at banks by $10, and for investment banks at $20-$30 depending on leveraging- in David Henry and Matthew Goldstein, Business Week, July 16, 2008, How Bad Will It Get on Wall Street? Lehman's leverage ratio was between 24-31 times capital before the crisis. Worse, by saying banks are now safe compared to the situation before the crisis, is the Fed giving the green light to banks for some of the same leveraging behaviour that ocurred before the crisis?...

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To tackle stress it is important to disrupt the narrative and look for things that are positive. Four forms of mindfulness and meditation, yoga, breathing exercises are also helpful ways to tackle stressful days or events. Visualization is another way to do this.

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Peter Eavis describes the results of the new Federal Reserve LISCC's determination under Tarullo, Gibson and Taylor, to bring discipline to financial markets and reduce systemic risk. Over the last 3 years Goldman Sachs has spent $16.3 billion in buybacks, about 70% of profits, to return money to shareholders and improve metrics such as earnings per share. This strategy will now have to be reversed. With the Fed stress tests in Feb. 2015 the focus is on banks with large trading desks. Goldman unlike other banks has counted on a strategy of preserving a large trading operation in the hope that this will earn the bank larger profits when the market recovers. This does not sit well with the Fed in the 2015 stress tests- showing a $23.8 billion loss if the stock market fell by 60% in a crisis, leaving Goldman with a bare minimum in reserves. Goldman will now have to reduce the buybacks to add to reserves after the current stress tests, and pare down its trading desk operation.

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Some excellent ways to cope with growing stress and anxiety during coronavirus and the elections. The important thing is to move to something else, to take a break and think of something beautiful. A short burst of exercize, a walk can be very helpful. Practice rhythmic yoga type breathing. Try doing some other things that are on your work list.

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The UK Education Report from Education Secretary Bridget Phillipson as shown in The Times says “In practice, high standards currently too often means high standards for some — our ambition is high standards for all”. It sees the basic emphasis on knowledge depth and excellence in education, the infrastructure as working well and intends to keep this. The change is to bring all schools up to these higher standards. Childcare infrastructure and services would be made available to all.  Rote education and stress on memorization, taking too many GCSE exams, student stress from the large number of exams more than Ireland and twice that of Canada, not enough apprenticeship training programs, will be points that will receive attention. “The national curriculum should remain relevant and up to date while embedding and recognising the importance of cultural knowledge stemming from the past.” More emphasis on developing this kind of national curriculum. ...

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Simon Nixon says the main problem with the E.U. bank stress tests of 2011 is that it did not test for sovereign defaults. For example Greek debt that is trading at 50 cents on the euro, was marked down 15%. And the lack of urgency to raise fresh capital is another problem. He says the real value of the tests comes from the asset disclosures that accompanied the tests.

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A study by Chris Whalen, managing director of Institutional Risk Analytics, of 7000 regional and community banks from data presented for the second quarter to the FDIC, shows that the bank's financial picture is deteriorating. Institutional Analytics put afailing grade on 1,882 banks as of June 30, 2009, up 16.5% from the end of March 2009. He says even the best run banks are feeling the bad effects of declining employment and asluggish economy. Whalen says this calls into question whether the stress tests for the "big banks" by the Obama adminsitration are adequate to control the crisis. Whalen says the asummption in those stress tests was that thes big banks had tohave enough capital and earnings to withstand a 9% loss rate, but what he is seeing in the industry is that we are already at a 9% loss rate , and the cycle has not peaked yet. He says any reduction in loss rates as assumed by the government may be shortlived as he sees things worsening in the fourth quarter of 2009. What about the good news that the big banks have raised capital in 2009. He says banks face operational problems, in addition to loan losses and low recovery rates on unloading assets they face rising expenses to carry these properties that generate little revenue. This cuts into earnings and what they can allocate to reserves. In this period banks are setting aside only half of what they would normally put in reserves to offset expected losses....

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Sheila Bair, former head of the U.S. FDIC, points out flaws in the rules for capital adequacy ratios and risk weighted assets which allow banks to increase their capital adequacy ratios. The ratios show the financial strength of the banks and their ability to absorb losses, which makes their accurate calculation very important for the safety of the U.S. banking system, especially with large "too big to fail" banks. Bair says the 2013 U.S. Fed stress tests showed Bank of America as having a capital adequacy ratio of 11.4%, when it should actually be 7.8% without the risk weighted adjustment. The mortgage banking crisis showed how the risk wieighting can be flawed and give a distorted representation of the acutal risks facing the banks in its assets. For Morgan Stanley the 2013 stress tess by the U.S. Fed showed the capital adequacy ratio at 14%, taking out the risk weighting adjustment this drops to 7%. Bair says its not the idea of risk weighting that is the problem, but the way it is applied- for example considering sovereign government bonds in the eurozone as zero risk, or that only 20% of the accounting value of debt one banks buys from another bank is to be taken into account in setting the ratio. Go back to the drawing board she says, it makes no sense that Citibank debt be shown as having one fifth risk of IBM's. ...

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The Bank of Cyprus and the Cyprus Popular Bank (Laiki Bank), passed stress tests given by the EU in 2010 and 2011. By the end of 2010- even as other banks such as Barclays were cutting their Greece government bonds by over 50%- the two banks held 5.8 billion euros of Greece bonds, over $1 billion euros larger exposure to Greece than nine months earlier, according to European regulators. Regulatory supervision failed to alert the banks and the banks risk management failed to see the warning signs in Greece. The Laiki Bank Risk Officer went in the opposite direction actually increasing exposure to Greece, saying in a conference call in August 2010, that he had used the bank's capital position "to deepen selectively some highly profitable client relationships." What went wrong with the stress tests by the EU regulators in July 2010 of these two banks, was that the tests looked at what would happen if economic conditions deteriorated, but did not consider the possibility that government bonds could produce losses. The two banks suffered total booked losses of 4.3 billion euros in 2013 from holdings of Greece bonds. The EU stress tests of July 2010 showed the two banks having total of 572 million in surplus capital. The two banks then went on to issue dividends in 2010-2011 totalling 141 million euros. By March 2013 the Laiki Bank was "on respirator" for a few months, according to the Central Bank of Cyprus, until the 10 billion euro EU bailout in March 2013 with the closing of Laiki Bank and the sharp downsizing of Bank of Cyprus....

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A worldwide trend to shorter term borrowing means that institutions and sovereign governments will compete in the capital markets, as they try to roll over existing borrowing by 2012. The US has $1.3 trillion to roll over by 2012. Worldwide about $5 trillion has to be rolled over, and of this $2.6 trillion is in Europe. With the European financial crisis which started in Greece it is becoming harder for sovereign governments to borrow in capital markets at favorable rates. A former economist of the Bank of England says this is of the highest importance for lending and for growth. The implications are reduced lending by banks to businesses and consumers, reducing output and growth, and limiting reductions in unemployment. It is a big issue say analysts, as debt needs to be rolled over over shorter periods. Moody's study shows new bond issues by banks during the last 5 years matured at an average 4.7 years. The stress say experts is likely to be on the less healthy banks like the savings banks in Spain, Landesbanks in Germany. Stress tests on European banks will be out July 23, 2010....

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The NYT raises questions about the stress tests. It asks whether the modest economic bounce that may or may not occur, and amix of policy actions- such as the capital infusions into banks, fiscal stimulus, and other government interventions- will revive the banks? And says its not sure at all. Questioning whether the lack of stronger government action was a wise move by the Obama administration, in the same manner as three experts Hubbard, Scott, and Zingales did in an oped piece in the WSJ last week, the NYT editorial says, "what is known is that buying time, rather than forcefully intervening to restructure weak banks, can be a dicey gambit." See the link to Hubbard. Hubbard and his colleagues say that President Obama has the wrong Roosevelt in mind, its not Franklin but Theodore he should be looking to, and his admonition to talk softly but carry a big stick. It also raises the question about the regulatory reform, and the government oversight, that as Krugman noted in a piece last week, is receiving only a weak response from the Obama administration, and the dangers of going back to "business as usual."...

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The European Banking Authority has worked on an exam for European banks since October 2011- separate from earlier stress tests- to determine the capital shortfall at banks arising from potential losses on bank holdings of sovereign debt. The EBA says banks in the eurozone will have to come up with 114.7 billion euros in new capital by June 2012, to meet reserve capital requirements for core Tier 1 ratio of 9%. The EBA looked at bank holdings of European government bonds as of Sept. 30, 2011. Loss rates for government bonds were applied at current market prices for the debt, and banks that fell short of the Tier 1 capital ratio of 9% were identified. This is different from the stress tests in that the stress tests were designed for banks to withstand deteriorating economic conditions, where a range of losses were applied to test for resilience. Spain and Italy have capital shortfalls of 26.2 billion euros and 15.4 billion euros respectively. Germany has a capital shortfall of 13.1 billion euros, France 7.3 billion euros, Portugal 6.9 billion euros, Belgium 6.3 billion euros. Banks have till January 2012 to show how they will come up with new capital. EBA officials will ask banks to do this without restricting lending. Germany's Commerzbank has a 5.3 billion euros capital shortfall, and may need government funds. Italy's UniCredit SpA plans to make a 7.5 billion euro share offering to its existing investors which will address most of its 8 billion euro shortfall. Spain's Banco Santander is divesting assets in Brazil, Colombia and Chile to meet a 15.3 billion euros shortfall. France's BNP Paribas and Societe Generale have shortfalls of 1.5 billion euros and 2.1 billion euros, which they plan to meet by selling billions of euros of assets....

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The incoming executive director of the European Banking Authority, Adam Farkas, voices concerns about the stress tests of European banks in 2010, and would like to use more rigorous criteria for 2011 stress tests. "I would personally opt for a stricter approach," he said in testimony at the European parliament in Brussels.The stress tests for 2011 are already being watered down by the EBA in response to pressure from governments. The stress tests use macroeconomic criteria for growth and unemployment that are benign. And tests are not taking into account a scenario in which European sovereign bond holdings of European banks decline in value due to defaults in some countries. The result is likely to be a loss of credibility in the stress tests. Under worst case scenarios for Greece, and some other countries, their economies would do better in 2011 than in 2010, and improve on 2011 in 2012. The UK Financial Services Authority tests use an unemployment rate of 12.4%, in contrast to the 10.6% rate for the U.K. used by EBA in its worst case scenario. The actual unemployment rate in the UK was 8% for the 3 months to Jan 2011, according to the UK National Statistics Office....

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Narendra Modi of India visits Poland and Ukraine after visiting Moscow, the only leader to do so and who can talk to both sides, and who believes resolution of the Ukraine can only come outside of the battlefield. After a once in a century pandemic, and with the poor countries of Africa, Asia and Latin America needing trillions of dollars to rebuild their economies, the idea of war in Ukraine adding additional stress to billions of people all over the world, stressing food supplies, supply chains and cost of living, is unacceptable for Modi. He has made this clear to Putin in Moscow during his visit and is likely to do the same in Kviv, to create the conditions for bringing peace to this region and relieve world tensions, help rebuild after the pandemic.

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Larsen says the EFSF should get the funding it needs to recapitalize troubled European banks, as the first step to solving the eurozone financial crisis. Banks in Spain and Italy that failed stress tests would get funds to build up their capital. Creditor haircuts should be part of the effort to reduce the debt burden of troubled eurozone countries.

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Analysts say that if Greek banks pass the European banks stress tests to be announced this week, the stress tests must not be rigorous enough.

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Simon Johnson, is Professor at MIT's Sloan School, senior fellow at the Peterson Institute of International Economics, co-founder of BaselineScenario.com a widely cited site on the global economy, and is a member of the Congressional Budget Office's Panel of Economic Advisors. Here he talks to the WSJ's Deal Journal reporters. He says the stress test don't mean much because the government using a milder scenario, made the banks look better than they really are. He suggests a wait-and-see strategy, as banks have 1 month to file plans on how they will raise needed capital and 6 months to do it. He sees a steeper yield curve on Treasury debt as a result, with long term Treasury securities like 20 year Treasury notes yielding higher than short duration securities, which should stimulate long term lending. Expect banks to issue more bonds than stocks which dilute shareholders value, and as bond prices are low. Johnson sees real risks of inflation in 1-2 years, becaue of the way the government has inflated the economy, in a manner he says like the private sector bubble. Expect the government to cut back to prevent this from happening. He also sees pretty good earnings in the financial sector in the second quarter which should help stocks. The question remains about how sustainable all this will be, because he says " the government by oversubsidizing the financial sector will get us stuck in the same kind of financial bubble that got us into the mess in the first place." ...

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Experts say wisdom is important for well-being the older you become. About 150,000 people are over 85 years age in New York City. This series in the NYT in Dec. 2015 looks at people in the city, their lives, and their attitudes to life. At this age as other physical abilities decline it is wisdom that makes up for this. By being positive about their aging and adapting to their limitations older people make better lives. Laura Carstensen, director Stanford Center on Longevity, says this period can be better than people think for seniors who have gratitude, forgiveness, calm and appreciation in greater degrees from 50 years to 70 years, continuing into the later years. Anger and stress being replaced by conveying gratitude. The positive attitudes to aging also affect memory and heart disease. One of the people covered Ping Wong, 90 years, plays mah-jongg with friends every day and does everyday activities that make her happy. Jonas Mekas, 93 years, is a filmmaker who continues his working activities- doing an exhibition in Brescia, Italy, publishing an anthology of his writings, and giving a lecture in Berlin on filmmaking. Mekas has an interesting philosophy of life- he says do what you are doing and don't think about it much, it will all end sometime, just do something good for humanity that someone else can pickup from you when you are gone, which is normal. A sense of optimism prevails in these lives. Says Mekas its important to not give up on the idea of paradise....

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Women do twice as much of the caregiving for elderly parents and small children as men. About 41% of mothers say this makes it harder for them as working parents. About 20% of the female workforce in U.S. is giving elderly care. This adds up to more stress, decreased working hours, decreased income, needing leave of absence, and missing promotions or training. Only 14% of working people in the U.S. have even one day of paid leave to care for a new baby or seriously sick family member- a startling statistic for America, showing lack of family friendly policies at most companies.