Brian, Thank for the post.  I have to agree with some of the points of the presentation, but also have to disagree with the adjusting of the borrowers interest rates is a major factor in the current situation.  My opinion is based some research I have done on properties that were on the Sheriffs block for sale.  Very few of the loans written on the peoples homes were ARM's and as best I can tell the loans went into default prior to any rate adjustment.   Quite a number of the borrowers in foreclosure had been using the homes a a piggy bank, going to the well every couple of years for more cash.  Now the well is dry.  I believe a few months ago that Countrywide claimed the major reason for foreclosures was Curtailment of Income.  I believe this is a more likely explanation of what is happening.  

SOAPBOX MOMENT.   Do you know any politician that would acknowledge lower wages, closing of companies and the loss of jobs to other countries has anything to do with our current economic situation.   Something that could be blamed on them?  Or do you think they would blame someone else? 

Also do you feel sorry for the business that sent jobs overseas in the name of profits and are now complaining or concerned with weak US economy because we can no longer afford their products.   Will they take any responsibility?

Hope no one takes offense to this soapbox moment. 

This is only my opinion and only looks at my personal review of the foreclosures in the Cleveland Market Area.