The loans exploding in the US are not subprime (those exploded last year)--they are superficially legitimate.  And their vast scale--greater than subprime--is gradually swamping the entire system.  

The key point is the teaser rates:  These are loans designed IN FACT to fail (after they have been unloaded onto someone else) to the detriment of borrower and note-holder alike.  

The Fates are kind.