Friday, Jun 27, 2008
The future of credit
Telegraph: Pawnbroking goes high-end
Consumers buckling under the strain of higher living costs are returning to the Victorian age in a bid to get their hands on some cash – they are hot-footing it down to their local pawnbroker. And it is not just those on low incomes who are pawning bits of jewellery and small family heirlooms. Some brokers report City whizz kids and professional footballers offering cars or Rolex watches worth tens of thousands of pounds in return for a loan.
This is priceless. But seriously Pawn Brokers look positively moral in comparison with high street banks. They have *real* assets backing the money they lend. Wait a second I think they just got upgraded to Angels of light -- they have 100% backing for their loans with real stuff. Wow. They don't do fractional reserve pawn broking, hahaha
3 Comments
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1. mark wadsworth said...
You could do fractional reserve pawn-broking, you know. The pawnbrokers could just hire out all the Rolexes, Ferraris and posh tea-sets to people who want to impress other people for short periods.
2. drewster said...
Mark, I think you may have just hit upon an excellent new business model!
3. japanese uncle said...
Didn't I say this some 20 months?