This is misleading. It gives the impression that the thing implodes all at once when the rates re-set. Not true. It’s going to be a slow leak and then a very fast one.
Like the character in the Hemingway novel who answers the question of how he went broke, “Two ways,” he says. “First slowly, and then very fast.”
A friend of mine purchased a lot of property along Biscayne Boulevard in Miami following the Overtown Riots. Sold most of it three years ago at the height of the boom, and he is a very wealthy man. Which puts me in mind of Rothschild's old axiom to buy at the sound of cannons and sell at the sound of trumpets. Or, when there's blood in the streets, its time to buy.