Some like AHM (American Home Mortgage) have even closed their doors permanently and gone bankrupt.  Others like Countrywide are taking all available credit even if they have to give the farm (controlling interest) away to help float through these tough times.  The sad part is according to recent news this is only the tip of the iceberg.  In the next few months and over the next few years millions more of the teaser or ARM (Adjustable Rate Mortgage) loans will reset to higher rates and payments.  Many of these buyers will find their payments escalate far above what they can afford and will inevitably end up in foreclosure. 

So what does this mean to big ticket items like auto sales as consumers begin to cut back or put off big ticket purchases like cars and trucks?  It spells disaster in an industry that never really totally recovered from the fall in sales after September 11, 2001.  The relentless onslaught by successful imports Toyota and Honda with their bland, but highly reliable products like the Camry and the Accord have also literally taken huge chunks out of the U.S. auto market (the largest in the world) from which the big three are struggling to retain market share or mostly minimize their losses.  Prior to this mortgage fiasco and economic downturn, they were having a hard enough time.  Then Toyota ramped up its advertising and marketing for the Tundra and took away the last profitable market segment from the big three – the full size truck market which was long the sole bread and butter markets of Ford and GM.