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Woe be to the Homeowners

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Reader Monkey forwards us linkage to an article on Slate that literally made us squirm in our seat. If you've been enjoying the subprime mortgage disaster just wait until next year when the Option ARM meltdown begins. And ground zero of this disaster will naturally be in California. "California should be the poster child for a mortgage-loan bailout. In few other places have so many taken on such onerous debts with so little equity.Unfortunately, the crisis in California is going to get much worse, and there is no bailout that will solve it. Why? Because if the first stage of the foreclosure crisis was about people who could not afford their mortgages, the next stage will be about people who have every reason not even to try to pay their mortgages.... Which brings us to the other scary part of the California story: a coming wave of interest-rate resets in prime loans given to people with good credit that are just as bad, or worse, than we've seen in subprime." [Slate]