In the months ahead, millions of adjustable-rate mortgages will reset, giving them a higher interest rate as required by the loan agreements. Many homeowners may be unable to make their payments. Soaring mortgage default rates this year already have shaken major financial institutions and the fallout from more of them. Some experts say this could spread from those already battered banks into the general economy. The worst-case scenario is anyone’s guess, but some believe it could become very bad. “We haven’t faced a downturn like this since the Depression,” said Bill Gross, chief investment officer of PIMCO, the world’s biggest bond fund. He’s not suggesting anything like those terrible times — but, as an expert on the global credit crisis, he speaks with authority.

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