(Editor’s Note: While you watch these videos from 2008, think about what the Obama administration did or did not do to circumvent the coming waves of residential resets and commercial mortgage resets during his first year in office.)

Very few people, and none that I know, would be happy to be the bearer of bad news, but this might explain why Tea Party Patriots have been screaming “stop spending money“.

The second tsunami of the residential mortgage meltdown disaster is about to roll right over us and what is left of our wallets. Amazingly enough, it was covered by ’60 Minutes’ in December, 2008.

Whitney Tilson of T2 Partners explains the Alt A and Option ARMS that are going to reset starting this year and continuing through the entirety of 2011 into 2012.  This is one of many indicators I have been watching, and it is probably one of the reasons why the central bankers put one of their very secretive meetings on the calendar for this week in Sydney.

According to Mr. Tilson, the ALT A mortgages are valued at close to $1 Trillion, and the Option ARMS come in somewhere around $500-600 Billion.  Mr. Tilson expects that about 70% of these mortgages are going to default.  The continued credit freeze for average Americans will, more than likely, contribute to the defaults.

Part 2, Florida Foreclosure Row

What do we have to combat this? Obama, Bernanke, Geithner, Frank, and Dodd. Have you stocked your pantry and/or root cellar yet?