by Calculated Risk on 2/25/2009 02:42:00 PM
Wednesday, February 25, 2009
Stress Test Economic Scenarios
According to the Supervisory Capital Assessment Program FAQs, the Stress Tests will be completed "as soon as possible" but no later than the end of April.
Here are the economic scenarios for the stress tests:
The more severe case is a 22% decline in house prices in 2009 and a 7% decline in 2010 (using the Case-Shiller Composite 10). I'll put up a graph with these projections soon.