Resetting lower? I don’t see how ,, most of these are going from teaser rates or “pick a payment”/”negative ammort” to some baseline rate plus a few percent.
Those are the option ARMs but even then, if they are indexed to LIBOR or average of treasuries the rates are still going to be low.
The credit cards and prime loans are about to walk the plank. This second phase of credit defaults is going to dwarf the subprime credit defaults. The U.S.Banking system is being kept afloat by deluding the public, and the Chinese, Russians, Arabs, and Japs are planning to dump their dollars. The monitization of our debt has already begun. This is how wars begin. Or, if we are lucky, we will wimper quietly and go straint to a socialist state. This time next year will have brought the reckoning. It is going to get as bad as we can imagine.