Thursday, October 30, 2008
Last month I wrote a piece that was highlighted in Paul Krugman’s NY Times The Conscience of a Liberal blog, where I argued that overly run-up lines of revolving credit will be the next shoe to drop in the credit crunch.
Well, clearly the Fed is worried about this because they published a super-cool dynamic map of credit card delinquency rates on the NY Fed’s website.
According to the map, in Suffolk County, Massachusetts – where I live – 2.48% of all credit card loans are 60+ days delinquent. Fortunately that is not me, but obviously this is a problem when the labor market is expected to post its tenth month of decline in October. The top delinquency rate is Shannon, South Dakota, where 11.19% of all credit card loans are 60+ days delinquent. This data is current as of the first quarter, and I expect that these delinquency rates have changed a bit (probably risen).
Here are the top 25 U.S. counties in terms of credit card delinquency rates: