Just giving these guys the benefit of the doubt still spells massive problems down the road. Even if there is not one foreclosure as a result of these ARM’s resetting you are still going to have 5 million people whose monthly payments are going up. They pointed out many will not be able to go out to eat as much, or for that matter purchase furniture, or take that vacation, or buy that new car, or…..etc etc etc. Areas of the country such as So Cal where you have a higher percentage of these types of loans will be hit hardest in their local economies. You are right Poway Seller the numbers are staggering. I try to keep an open mind listening to advocates of a soft landing. More and more their arguments sound like empty rhetoric.
