Barry Ritholtz–Chief Market Strategist for an institutional research firm, and the Fund Manager for RCP, a NY based hedge fund–posted about our pending economic crisis on his blog.

Over the next 20 months, more than two trillion dollars worth of adjustable rate mortgages will reset at higher interest rates.

Now, I don’t want to be accused of being a perma-bear or anything like that, but I am having a hard time trying to figure out exactly how anyone can spin this into a positive: Dark matter? Credit Surplus? Real Estate Boom?

I’m at a loss for words spin.

One title insurer ran the numbers, and they project that of the adjustable rate mortgages written over the past 2 years, as many as 1 in 8 (12.5%) will end up in default.

I rent my home. But I faced this same predicament with my vehicle. I leased it in 1999 so I could afford the payments. After five years the lease ended and I opted to finance the remaining $15K. So, I’m buying the car twice. After years of suffering from financial stupidity, I finally learned the hard way. If you can’t afford the payments, buy something cheaper.

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