Option Arm Resets, Bum Notes, Billy Goats!

[Laughing Gnome]

Sorry chaps, nothing really to add here, just on a trawl for latest information.

So stateside, it appears there has been outright fraud on an epic scale with MBS's tripple pledged around the globe if I get it. I don't really.

Right of tenure and foreclosure hugely in doubt for millions of homes.

And I have just remembered. Weren't Option ARM mortgage resets supposed to peak about now?

Are millions about to face their interest payments trippling on an increased amount of capital when their home is worth substantially less than was when the mortgage was taken out. And would there seen to be even less point in even attempting to pay when in 23 states or more it appears that foreclosure might not even be possible?

Any more detail on this? Option ARM was billed as the BIG ONE, but seems to have dropped below the radar.

[VeryMeanReversion]

Just some more thoughts to add.

We may think this is an issue confined to the US but the buyers of these MBS's are very likely to have been UK banks (and pension funds). How much off the losses will be coming this way? (to be hidden with revised accounting rules of course).