Publicliterature.org

Closer Look At The ARMs Reset Problem

This is a very thorough article. I enjoyed it, but I believe that the 2011 problem may be overstated. I believe home equity should be built up by this point (home values may be near all time highs 3 years from now). This would only require a market stabilizing and perhaps increases in value 2-4% from 2009-2011.

Even if home prices remain at their current levels, the Fed understands the problem so well, that they will jump in again and be more accurate with their actions.