$2 Trillion House of Pain
In a nutshell, an estimated $2 TRILLION in ARMs are seeing their rates and payments adjust higher this year and in 2007. That's about a quarter of all mortgages outstanding. Too many fools bought too-high priced homes in the too-speculative real estate boom. Now, they're going to get creamed as their monthly payments rise 20% .. 30% ... 50% or more. Ugh.
As an aside, it's amazing to me that just a few years after the dot-com bubble burst, people were so easily swept up in the housing bubble. Doesn't anyone have half a brain anymore?