People being underwater happens to mean that the banks have bad loans. We have seen that movie before. Interest rates will not be allowed to increase faster th

People being underwater happens to mean that the banks have bad loans. We have seen that movie before. Interest rates will not be allowed to increase faster than the property market can absorb. You can count on that; the political imperative could not be more clear. The next crisis will probably be some novel flavor of financial recklessness.