Mortgage defaults are just starting

Sixty minutes produced a 12 minute video that I highly recommend everyone reading this blog watch.
It goes through, what many bloggers have known for years, that there are multiple waves of the financial crunch.

The Subprime loans are ending their tail end of resets. Next up is Alt-A and adjustable rate loans will hit in the next few years. Since people cannot afford the housing today, this will only spiral into a worse condition.

Therefore this financial debacle won't likely end until 2011 at the earliest, more likely 2012 or beyond.
This, among other factors is why I am a near-term bull, but still a long term bear. This time next year the economy will look worse than it does today. And the trillions of dollars in government backed loans will turn into the US government owning more property than most communist nations.

An alternate video to watch is a pretty funny video by Fred Thomson. The sarcasm is dead on why this won't work.