by TheDude » Sat 03 May 2008, 22:31:43
Picked this up at
Mish:
Booming pawnshop business
$this->bbcode_second_pass_quote('', '"')People are cleaning out their houses of gold, silver, whatever, to get money just to fill their cars with gas," said Nat Leonard, 51, whose grandfather opened Society Hill in 1929. "People are pawning out like crazy." "I've got business owners coming in to pawn things just to make their payrolls," Leonard said, incredulous. "I've never seen that before."
"Upper-income people are in pawnshops nowadays, needing money right away to meet payments," said Bill Stull, chairman of the department of economics at Temple University's Fox School of Business and Management.
"We are in an economy in which many people are living right at the margins, even middle- and upper-income people. They have little savings, they've borrowed so much, their credit-card bills are high, and their house values are going down."
Desperation amidst flea market boom$this->bbcode_second_pass_quote('', 'T')o meet higher gas, food and prescription drug bills, they are selling off grandmother's dishes and their own belongings. Some of the household purging has been extremely painful — families forced to part with heirlooms.
"This is not about downsizing. It's about needing gas money," said Nancy Baughman, founder of eBizAuctions, an online auction service she runs out of her garage in Raleigh, N.C. One former affluent customer is now unemployed and had to unload Hermes leather jackets and Versace jeans and silk shirts.
At Craigslist, which has become a kind of online flea market for the world, the number of for-sale listings has soared 70 percent since last July. In March, the number of listings more than doubled to almost 15 million from the year-ago period.