Being one that is easily fascinated by consumer psychology and social trends, I noticed a few interesting correlations that appears to exist in the latest round of foreclosure numbers.

It would appear that foreclosure rates are substantially lower in states with a blue collar image, share a border with Canada, or have a backwoods stereotype.

A few possible correlations stand out to me:

1. The Backwoods Stereotype. When was the last time you heard of someone moving to the heart of the Appalachian Mountains (e.g. West Virginia) for the intellectual superiority factor. Could this apply to other states like Wyoming or Montana as well?
2. Colder Climates. Four of the five states have fairly tough winters. Could this be something that influences their financial planning or force them to pay more attention to their finances?
3. The Canadian Influence? Four out of the five states listed here share a border with Canada. Do the Canadians know something about personal finance and fiscal responsibility we Americans might need to learn?
4. Isolation requires foresight and planning. Some would argue that if you’re going to live in a more isolated place, like the quintessential Vermont cabin or a ranch in Montana, you’re probably pretty good at planning ahead and having the foresight to avoid future problems. Whether that be having enough firewood to last the winter, or having enough money in your savings account, both require adequate planning. If this is the case, could a conservative 3-6-3 banker or P2P investor get a better ROI by cherry picking residents of these states?
5. The Superiority Complex? States like California, New York and Florida occasionally give off an arrogant tone when their residents claim they have the most enlightened cities, best schools or best climate in the U.S. Could this arrogance have overly influenced advertising and became a catalyst in their real estate bubble.

Anything in this graph stand out to you that I might have missed or glossed over? If you live in one of the five states highlighted for your fiscal responsibility, can you identify a cultural or fiscal difference in your spending habits compared to a state who has a high foreclosure rate?

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