Economics and Investing:
News about the results of the Federal Reserve’s “Stress Test” got out, and it sent a shock wave through the financial world. The news was quite disturbing. Although with the caveat that it is not yet confirmed, I recommend reading the summary at Hal Turner’s web site. Reader “NDSS” mentioned this bit of much-needed common sense from Charles Hugh Smith: Why a 50% Drop in Housing is Not the Bottom. JWR’s comment: Anyone that thinks that the US real estate market will soon “recover” is dreaming. The peak in Alt-A and Option ARM mortgage rate resets won’t be until 2011. …