What people are worried about in Phoenix is what they are beginning to worry about everywhere: how are they going to pay their debts? Nearly $1 trillion in ARMs (adjustable rate mortgages) is scheduled to be reset in the next 12 months. How will people make the higher payments? Meanwhile, the biggest debtor of all time, the U.S. government, has its own ARM. If we read the schedule correctly, a third of the entire U.S. debt burden - almost $3 trillion - needs to be refinanced in the next 12 months.
Where is the money going to come from?
Pinched from 'The Daily Reckoning'. I'm sure they wouldn't mind.
