A friend and trader sent me a table of mortgages set to be reset (interest rate adjusted higher) over the next year or so.
Here's the table. The numbers you see are billions. With a B.
I think part of the bailout that the Fed could orchestrate, could include "encouraging" mortgage firms to refi people out of some of these really bad (read: expensive) loans, even if such people are not really credit worthy of a refi. Maybe the Fed lowers interest rates to make this more attractive. But if all these reset, without any intervention, it is going to get ugly.
And maybe it should get ugly. There is an argument to be made against bailing out everyone. We'll talk about that soon.
