You stating that ARMs caused the collapse in the economy is like saying the spoon caused Rosie O'Donnell to get fat. ARMs were and always will be misused. People are told about them and what they are good for but it falls upon deaf ears. All they see is the immediate impact on the bottom line. Then, in a few years when the rates reset, they act shocked.
Yes, we will always see ARMs in the picture. And it is up us to inform our clients as best as possible about the harm the ARMs. We are not experts (ok...maybe some) in the mortgage industry yet we cannot expect the mortgage brokers or lenders to educate them fully where they would comprehend the ramifications of their actions.