I think the real problem is the poor and non-existent underwriting. I also think that problem extends across the entire spectrum of mortgage products, not just subprime. The fallout is going to manifest itself all across that spectrum, albeit to a lesser degree for those segments involving better borrowers and better properties.
Just as the declining market trends start on the outskirts relative to employment and work their way in, so too will they start with the weakest borrowers in the market and work their way up.