It is the dollar amount of loans that will adjust. I’ve done the math on that before, assuming each loan averages $400K. The problem is not the amount of additional credit or interest paid, but the number of people affected. With high debt and negative savings, we Americans are just not equipped to handle 50% – 100% increases in our mortgages. I expect a huge swell in inventory, from current 25,000 to 50,000 or even 80,000. Most of them will be in foreclosure.

Oh, and for those from the other thread who need clarification of fact vs. opinion: the inventory and foreclosure estimates are opinions.