The Big Picture blog is reporting on a story in the Wall St. Journal stating: “A boatload of 2/28 APR mortgages are about to reset next year, and its not going to pretty.”  This has been pretty widely known, I believe.  The question is whether or not the market has priced any of this in already?  It seems like the markets have hammered the banking stocks some to this fear, but I fear that further downside is to come if the Fed does not cut rates.  The market is predicting an 80% chance that the Fed will cut, so if that does not happen before the turn of the years, credit markets could further be strained.