Much has been said about housing stabilization in the U.S. over the past few months. However, when one looks at the chart below, we are simply in the calm zone of the hurricane. As 2010 progresses, we can see that we will again pass through the eyewall and anticipate major damage. What makes this second wave even more catastrophic is that the economy is much more fragile now than in 2007.

Regards - VHF

Click to enlarge: http://tinyurl.com/yedqzek