The Next Leg Down in the Mortgage Fiasco

Where will it happen? California? Yep. A good article on the use of so-called Option Arms which are going to reset in the next year or two and in many cases double housing payments. Check out the random list of housing prices. If your payment went from say $2000 a month to $4000 a month and your house was suddenly worth 60% of what you owed, what are you going to do? Walk away of course. You can bet when the Treasury Secretary is lecturing homeowners on their moral choices, that things are desperate. Now why didn't he lecture Bear Sterns and the big investment banks on their moral choices?