People Turn To Pawn Shops In Faltering Economy

[onehandle]

Source: NBC 13

BIRMINGHAM, Ala.-- Mike’s Pawn Shop owner, Mike Cohen, has been in the pawn shop business for about 40 years.

As a business owner, he's survived more than a few downturns in the economy. In fact, people often turn to him first for quick cash when things get tight.

Speaking about the economy Tuesday, Cohen said, “I think this one might be a little worse than most of them.” Business at Mike's is likely up slightly, but what's really different is how clear people are when asking for a loan on one of their valuables.

“Where they used to not say what it was for, they do now. ‘I gotta buy gas for my car to go to work’,” Cohen said.

Read more: http://www.nbc13.com/gulfcoastwest/vtm/news.apx.-content-articles-VTM-2008-04-22-0013.html

---

Heckuva job, smirk.

[madaboutharry]

1. I was buying paint at a store

that happens to be right next to a "payday loan/pawn shop." The guy helping carry my paint to my car told me how the place next door has gotten very busy. It is just sad.

[Stuart G]

3. I think it is worse than sad...

Can't depend on help from the federal or state governments..I wonder what the action is at food pantries around the country?

[Bozita]

2. Payday loan stores and pawn shops are symbols of the solid Bush economy.

I'm predicting big things for rent-to-own centers and day-old/surplus bread outlets.

[enid602]

4. blood

And places where you can get cash for your blood.

[TechBear_Seattle]

6. I those places were made illegal?

As I remember it, the centers would pay $20 for blood and then sell it to the nation's blood supply for upwards of $45 and $50. The profit potential was so huge that they were failing to screen donors and thus threatening the nation's blood supply. The American Red Cross issued a policy saying that they would not accept blood from for-profit suppliers, causing the industry to vanish almost overnight.

[kestrel91316]

7. You can't sell your blood as far as I know. You can, however sell

your plasma, and I hear it pays well.

[Juche]

10. $60/week

Not bad for 5 hours a week of lying down and reading.

[On the Road]

5. If You Need Power Tools,

Go to a pawn shop. Great pickings. And yes it is a bad sign.

[ThomWV]

8. I'll tell you where they go now days, they sell on E-Bay.

All those god dam toys that seemed so important when a person had a job seem a lot less so now that they don't. We who buy price them accordingly.

[coriolis]

9. We have a neighbor who owns a pawn shop in town...he says business is TOO good!

His store is full and he has to turn own a lot of "loans". :shrug:

[Bozita]

11. So, ... the pawnshop owner is out of cash?

Understandable.

[coriolis]

12. I don't think he's broke but they can only sell so much stuff.

It seems that few customers are interested in the actual purpose of a pawn - a short-term high-interest LOAN; they're just trying to get what they can. He saw one guy take his money from a nice camera the other day and went across the street to buy gas. :scared:

[madamesilverspurs]

13. The increasing presence of alternative banking systems

- pawn shops, payday loan stores, rent-to-own businesses - is indicative of a souring economy. Some neighborhoods see these spring up like dandelions on a dying lawn, and we ignore their signal at our very great peril.