If this doesn't scare you, you ain't read it yet...
I heard about this report from Fool friend Whitney Tilson last week. Today, I see one of my favorite bubble blogs has posted it. I suggest you read it very carefully.
Bernanke ought to read it too, and if they can get him away from the white house laundry chute, they might consider doing a finger-puppet version of it for President Bush. Pay particular attention to the way that rate cuts have done squat to lower home mortgage rates lately, reflecting the fact that free money in the face of a massive bubble equity overhang means nothing but inflation.
No one wants to lend because they know people are overstretched and can't afford regular loans at reasonable spreads. The mortgage market is telling us that things are going to get worse, and its making the news a self-fulfilling prophecy.