The ARMs have imploded the mortgage market in the U.S. and could have long term consequences on the overall housing market. Speculation is a dangerous game particularly when it involves people with lower income and luring them into a trap of short term low rates that ultimately end in foreclosure of their house. This has become a scandal. There are even companies like Ameriquest who have committed a litany of fraudulent acts and have multi-district lawsuits across the country that place the company on the brink - as well as their banks. The result of this speculative cycle is that now first time home buyers are having a far more difficult time getting a mortgage inspite of their credit rating.