Gold and Silver Analysis - Precious Points: Why This Rebound Looks Real

"The rate hike camp also assumes that, simply because subprime mortgage defaults have not yet spilled over into the rest of the economy so far, they never will. By Bernanke's own admission, the number and value of defaults are going to increase through 2007 and 2008. Even if the Fed doesn't hike rates, even an incremental rise in bond yields, and the resultant increase in all manner of credit spreads including home and auto mortgages and credit cards, will translate into even larger payments for owners of ARMs, and most likely into a larger number of defaults."