The overly optimistic folks at the Federal Reserve, released its so-called worst-case scenario” bank stress test. This outfit plans to review how the nations 19 largest banks will fare if there was a 13 percent unemployment rate, a 50 percent drop in stocks, and a 21 percent decline in housing prices.
It sounds like a worse case scenario, until you look at Greece. Seriously, 13 percent!?! Greece has an unemployment above 20 percent. It’s young adult population is seeing an unemployment of 50+%! How about that 21 percent decline in housing prices. Does anyone seriously think that housing prices have generally been going up? Just what are the people at the FED smoking?
If the stock market fell 50%, that would mean that the paper manipulation game of the economy was about to end, and in the long run, that might be a good thing.
More at http://www.cnbc.com/id/46709890
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