I'm going to stick my neck onto the chopping block and say...

I'm going to stick my neck onto the chopping block and say this...........and I'm speaking in sweeping general terms here...........
Low income earners generally have little idea of finance and intelligence to match. A smart savvy person would be more unlikely to take on a mortgage that he/she is unable to service even with interest hikes and will leave room to manoeuvre to take account of unexpected minor problems.
The general population of the world is somewhat dumb and they don't come dumber than the underclass Americans which is who these low start loans were designed for.
Interest rate hikes have been modest and steady both here and in America and if anyone is having problems paying their repayments due to interest hikes alone then they shoudn't be in the game atall. Nobody should leave themselves that "tight" and will always end in tears.
Did they think that the sweetener rates would last forever? Of course not, they would and should have been aware that the day comes when they have to pay the standard rate at some point. It's far too involved to give a good explanation on a hc post but at the end of the day, it's best for everybody that these types of borrowers AND lenders are weeded out the sooner the better so that the rest of the world can move forward and leave the laggards behind; hopefully some of them will learn from it and do even better for themselves next time round.
I personally would rather the American govt. didn't bail them out just for short term political gain as the piper will still have to be paid in some shape or form another day.