There is something on the order of $57 Trillion in credit default swaps in circulation the holders of some of those obligations may or may not have the ability to pay in the event of default that one gets my vote for - 'ruh roh'
I agree with makloda here. CC companies - direct debt holders and issuers alike, have much further to fall.
Your idea is correct but your timing is off You said it yourself: 'What happens when there is a rise in delinquinces?' The CATALYST to set this off is delinquinces but this is not likely to happen any time soon. Unlike mortgages where if you skip your payments - lenders get on your case, for credit cards, if you skip a payment, nothing happens, your tab just gets bigger Thus the credit card debt bubble will keep on growing for a while Give it another 5 years