Must Read: Collection industry prepares for mortgage defaults

Salon.com's fantastic "How the World Works" blog has done some great reporting on the housing bubble over the past few months. Today's post on the growth of the default management industry is no exception. According to the post, investors are going gaga for companies offering default management services. This term incorporates tracking late payments, foreclosure processing, claims processing and all the other administrative tasks that come with a surge in unaffordable mortgages. Basically, debt collection agencies for mortgages

Here is the author's analysis of what this means for consumers:

If there's a market in default management, then things are getting bad. Six months ago you could have had a decent argument as to whether the housing bubble had popped. No longer. That's a given. Now the big question is: How awful is it going to get? Will the mighty American consumer at long last topple over, as the spigot of easy home equity cash finally gets turned off?

Click here to read the full article by Andrew Leonard online. What do you think the growth of the default processing industry means? Share your feedback in the comments section below.