When you mix overly-inflated housing prices with high-risk loans, and dash in a little market correction for a bit of a kick, this is exactly the kind of mess you end up with. We need to get those ARMs refinanced with a fixed rate lone and bring some stability back to the market.
Actually all those are just symptoms - the cause is bad economic policy. Right-wing economists attempt to prop up capitalism with just interest rate intervention - it doesn't work. Income redistribution is what is missing.
