Home
Account
Research Tools & Data
Educate
Contribute
News
ETFs
Sectors
About
Subscribe
Login
Manage Account
Quote and Research
Stock Charts
Earnings Calendar
Technical Scans
Economic Calendar
Chart School
Tutorials
Learning Center
Submit Article
Join Blog Network
Chat Rooms
Rate Broker
Rate Software
About Us
Contact Us
Advertise With Us
Terms and Conditions
Wall Street Journal: People Pulling Up To Pawnshops Today Are Driving Cadillacs and BMWs
By:
TraderMark
Sunday, January 04, 2009 9:03 PM
Symbols:
BGP
,
COH
,
CSH
,
EZPW
,
MOV
,
WFMI
Email Article
Bookmark:
Font Size
Print Article
Meanwhile, small business? Not to worry - pawn shops are for you! Cramerica - for the corporation, by the corporation.
At Society Hill Loan, a pawnshop in a middle-class neighborhood here, a steady rain fell outside as a fashionably dressed young man
parked his Cadillac Escalade
outside. Looking around warily, he came in to speak with Nat Leonard, co-owner of the store. The visitor was a 29-year-old engineer who was laid off earlier this year from one of the local chemical companies. Since then, he's been
cleaning planes at the airport for less than half the salary he was earning a year ago
. Now
he needs a $2,500 loan on his watch -- a Movado Fiero with a diamond bezel
-- to pay his mortgage note. (
these are the fellas we're going to give 4.5% - heck maybe 4.0% if Ben B can manage it fixed rate loans; you sucker who has been paying your mortgage the past 7 years? hahah- sorry - no soup for you
)
Typically, pawnshop customers have a household income of about $29,000
,
according to Dave Adelman, president of the 2,400-member National Pawnbrokers Association. But operators around the country say they are
seeing a surge in new activity fueled in part by a different clientele: middle- and upper-middle-class customers
facing ravaged stock portfolios, tightened bank credit and unexpected layoffs. In areas dogged by high unemployment and foreclosure rates, the pawn business is especially robust.
While some pawnshops -- like Beverly Loan Co. in Beverly Hills -- have discreetly served the wealthy for decades, more stores, such as Society Hill, are
newly awash with furs, diamonds and other baubles from the bubble
. At places like Society Hill, transactions are up by as much as 40% in recent months.
Lee Amberg, owner of AA Classic Windy City Jewelry & Loan in affluent Evanston, Ill., said he's been seeing Cartier watches, two-carat diamonds, David Yurman jewelry and pieces from Tiffany's. One client, he said, brought in a fur coat from Saks Fifth Avenue that retailed at $9,000. She told him she needed a loan to help buy private-school uniforms for her child.
Diamond Exchange USA is more of a hybrid store. In addition to selling its own pieces, it makes loans against customers' goods and purchases used jewelry too. Located on a major thoroughfare in Bethesda, Md., it has a
constant stream of Mercedes-Benzes, BMWs and other luxury cars pulling into the lot
. Virtually all of the clientele are women. Many come to sell their gold or diamond jewelry.
On a recent weekday morning, a line stretched from the front counter at Lewiston Pawn Shop. Mr. LaChappelle and his Lewiston, Maine, staff turned away many customers with less-than-desirable goods.
The end of the story has some anecdotes about small construction company owners forced to the pawn shop due to the credit crisis; hopefully by the time we give away all the pork of New Deal 2.0 (of course they promise NO PORK!) to the large corporate firms whose lobbyists are firmly implanted ... well you know... there will be a few crumbs left for the small business guys.
Anyhow, moral of the story - I'd like EZCORP to go up so any owner of EZCORP can make capital gains to help fund the bailouts of said Escalade owners. Thank you.
Long EZCORP in fund; no personal position
Next Page >>
<< Previous Page
1
2
3
Bookmark:
Email Article
Print Article
Related Stories
Research Related Stocks:
BGP
,
COH
,
CSH
,
EZPW
,
MOV
,
WFMI
,
More Articles on:
Finance
,
Consumer Staples
Another Hard Look At EZCORP
UPI NewsTrack Business
Biostar Raises $3.6 Million
200 Waldenbooks outlets to close
Bulls Back On Track?
Rate this Commentary
Comments
(0)
No Comments
Post Comment
Name:
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
Advertisement
Related Press Releases
RidgewaterEquity.Com Free Fundamental Sector &Amp; Market Research on MGM, MDT, MO, MENT, ONXX and WFMI
Cash America Announces Third Quarter Earnings Up 19% and Dividend Declared
Whole Foods Market(R) to Use Plug Power GenDrive Power Solutions; Delivering a Healthy Planet Through Fuel Cell Power
Coach Reports First Quarter Earnings of $0.44; in Line With Prior Year on Slight Sales Gain
Royce Micro-Cap Trust (NYSE: RMT) As of September 30, 2009
Popular Articles
Apple Inc (AAPL): Weaker Dollar Will Benefit Revenue Growth And Margins
By:
Financial Alchemist
GE's $19 Billion (And Increasing) Toxic Asset Sink Hole
By:
Tyler Durden
The Scariest Thing On Wall Street - FNM
By:
The Growth Stock Wire
Hot Stocks: Google’s Drive For Dominance Extends Into The Burgeoning Smartphone Market
By:
Money Morning
Natural Gas Companies
By:
Keith Kohl
Advertisement
Special Offers
Recent Articles by TraderMark
Nearly 600,000 Americans Walked Away From their Mortgage In 2008
International Monetary Fund to Sell One Eighth of Gold (GLD) Stake to India
Ugly Premarket Action
Warren Buffet's Berkshire Hathaway (BRK.A) To Acquire Burlington Northern (BNI) ; Split B (BRK.B) Shares 50 to 1
Lack Of Green Energy Manufacturing Capability In US Means 84% Of Stimulus Goes To Foreign Firms
The Market With No Memory From Day to Day
More Articles by:
TraderMark
More Articles on:
Finance
,
Consumer Staples
Research Related Stocks:
BGP
,
COH
,
CSH
,
EZPW
,
MOV
,
WFMI
,
Subscribe to
Email Alerts
or
RSS feeds
for articles from more than 300 contributors and press releases, SEC filings and full text news from thousands of sources.
{1}
##LOC[OK]##
{1}
##LOC[OK]##
##LOC[Cancel]##
{1}
##LOC[OK]##
##LOC[Cancel]##
Fundamental data is provided by
Zacks Investment Research
, market data is provided by
AlphaTrade.
, and Commentary and Press Releases provided by
Quotemedia