Sometimes -- but by no means always -- the stupid questions are the most illuminating.

Tuesday's 'stupid question' concerns stress and the U.S. economy. Namely, could the U.S. economy handle more housing stress? Or, put another way, what would the U.S. economy look like with another round of major write-offs for housing-related losses?

"It's not an economic model we want to project, but project we must," economist David H. Wang said. "First, for one thing, another round of large write-offs would, as they say, end all doubt regarding a U.S. recession. We would record negative GDP for Q3 and Q4, at minimum, most likely for Q1 2009 as well."

"Second, you're looking at additional consolidation in investment banking and commercial banking," Wang said. "Third, there would be considerable U.S. Government involvement, the scope and amount of intervention by the U.S. Treasury and Fed [U.S. Federal Reserve] is difficult to specify, until the size of the problem is known."

It's hard to identify a silver lining in the above, but Wang found one, "but we don't want to go there," he said. Another series of large, housing-related write-offs "would most likely propel Congressionally-backed, federally-directed structural changes in banking, mortgage finance, securities, and financial regulation," Wang said.

"It's one thing if the nature of the bailout is another $50 or $100 billion. But if it amounts to the takeover of a large bank or Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), the American economy would see its biggest changes since the New Deal," Wang said. "These changes would most likely end, once and for all, the 'heads-the-banks-win/tails-the-government-pays' banking system. You'd most likely see a two-tier banking system."

Not the 'end of the beginning' for housing losses?

Moreover, there are signs that it's not 'the end of the beginning' regarding housing and credit market stress, at least in the view of the former chief economist for the International Monetary Fund.