Credit Market Woes Continue

The percentage of mortgage holders starting foreclosure proceedings hit a record high at .65 percent in the second quarter of 2007. There are signs that this won't let up anytime soon:

"an estimated 2 million adjustable rate mortgages are scheduled to reset this year at sharply higher interest rates, which will cause monthly payments in some cases to double or even triple."

Clearly this is bad news for all the people that bought houses using the cheap credit that has been readily available for the past 10 years, but it remains to be seen how it will affect the credit market as a whole. Some people seem to think that the sky is falling here, while others are claiming that the whole problem is mostly illusory.

EDIT: Someone at the Fed thinks this is a big deal.