Housing Faces a Credit Event

The sharp two-month climb in interest rates represents a significant credit event.

The rate rise will have reverberations for housing, on the general economy and for the U.S. stock market.

I remain of the view that many areas in both public and private sectors are far more vulnerable to the recent rise in interest rates than most market participants recognize.

Among the areas most impacted by a ratcheting in interest rates is housing -- the "straw that stirs the drink" of the domestic economy.