Delinquency Rates

Posts are going to be a bit short and sweet as I'm finishing up the final chapter in the book. Then comes the editing process and turning all the charts into a standardized format. In the meantime here's a chart I thought we might already be able to surmise. Delinquencies, a forebearer of defaults are growing exponentially;

My question is if delinquencies turn into defaults and reach levels seen back in 1990-1991, what will that do to bank's capital?