Let’s get this straight.

Household credit is shrinking…
Profits are shrinking…
Employment is shrinking…
Housing values are shrinking…
The wage base is shrinking…

But the recession is over!

Whoa… how is that possible?

Sky-high default rates om mortgages are not confined to subprime-related borrowing, and the US economy has yet to feel the full force of the housing crisis, according to a report in the The Wall Street Journal.

According to the WSJ, there is a “rapid rise” in default rates on ARM mortgages,  mortgages that give borrowers with good credit several different monthly-payment options, reports. And a report by Citigroup says losses on ARMs may be “close to subprime” in some cases.