from the St Louis Fed
– this post authored by Michael C. Eggleston
Stark disparities in consumer credit exist in low- and-moderate-income (LMI) neighborhoods across metropolitan areas (MSAs). Consider George, who lives in Montgomery, Ala., and Francine, who lives in Madison, Wis. Both individuals live in an LMI neighborhood, which is defined as an area where the median income is 80 percent of the average median income in the metro area or state. Each is looking to purchase a car, both to reduce their commute time to work and to allow them more options for child care for their young children.