Fortunately, life got busy during a slow news time... But the long-predicted effects of America's profligate ways are starting to appear. The Wall St. Journal ran an article on May 18 that "Late Payments on Mortgages Rise." The great housing boom appears to have gone from a low-interest rate effect to a situation where the banks kept lowering their standards to make their loan numbers. Ruth Simon writes "Credit Suisse found that borrowers who took out adjustable-rate mortgages in 2005 were three times as likely to be delinquent on their payments after the first year as those who took out ARMs in 2003 and 2004" and "Credit Suisse also found that borrowers who were delinquent were more likely to have lower credit scores and to have taken out piggyback mortgages, which combine a mortgage with a home-equity loan or line of credit." Obviously this is not only the fault of the banks, but adjustable mortgages make it very difficult for the borrower to figure out what her payments will be. The teaser rates, even more so. The WSJ adds "Gail Burks, president of the non-profit Nevada Fair Housing Center, says borrowers are coming into her office who are having trouble making their payments as soon as a year or two after taking out a mortgage." Banks are increasingly able to spread their risk around by packaging these mortgages into bundles and selling them on a secondary market. Also, the Chicago Mercantile Exchange now offers a way for investors to bet on the direction of the housing market nationally or in specific cities. It may not only be homeowners we see go bankrupt this time around...