I think this chart is self-explanatory. Delinquency Rates have been falling to historic lows. The next move will be up.
What impact will that have on the overall economy? What impact will that have on banks? What impact will it have to gov't deficits and public debt? What impact will it have on inflation? What impact will it have on the dollar? What impact will it have on stocks?
This is the problem when people foolishly price in perfection.