This Is The Fed's Worst-Case Doom Scenario For The US EconomySubmitted by meekandmild on Tue, 03/13/2012 - 20:21
This Is The Fed's Worst-Case Doom Scenario For The US Economy
Joe Weisenthal | Mar. 12, 2012, 5:08 PM | 69,431 | 61
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The Fed just announced that the latest round of bank stress tests will come out Thursday at 4:30 PM ET.
As a reminder, this is the doom scenario banks will be stress tested against:
The supervisory stress scenario for CCAR 2012, which was designed in November 2011, depicts a severe recession in the United States, including a peak unemployment rate of 13 percent, a 50 percent drop in equity prices, and a 21 percent decline in housing prices. The supervisory stress scenario is not the Federal Reserve's forecast for the economy, but was designed to represent an outcome that, while unlikely, may occur if the U.S economy were to experience a deep recession at the same time that economic activity in other major economies contracted significantly.