You are absolutely right, Mike-in-Orange, with the only grace - as the article points out - being that re-setting ARMs are most prevalent in higher-prices cities like your own (SF?). But just as foreboding is the ominous rise in commercial foreclosures. One of my neighbors is in the commercial real estate biz, and he hasn't closed a deal in a year. Still no financing available, contrary to what Giehtner says, while the smaller banks keep dropping like flies.

And one day not too far away China will foreclose on America.

Woe is us.