I would love to know why Atrios is almost the only person who ever talks about this. When I bring it up even with people who are very well informed about the housing crisis, they have not even considered it.
This wave of Alt-A foreclosures is probably going to hit at the same time that unemployment starts to affect people with good credit and regular mortgages. ( At some point, those people run through their savings and can't pay either.) It's hard to see how the housing market improves with these land mines all over the place.