I said that given enough forecosures and the banks start to lose.

It seems that this is what is happening in Ohio which has the highest foreclosure rate in the US.

This may be the reason that Ohio has just created a $100 million refinance program to put qualified ARM mortgage owners into a 6.75% fixed rate loan.

This may only be like restocking 100 tuna fish after corporate ships have trawled the oceans to death but it is a band aid other states could use.