“Two employees confirmed for police that anyone who applied was being given instant credit — from $850 up to $4,000. They also told police that people started calling other people to the store for so-called free money. The store ran out of credit applications.”
The end result wasn’t much different either:
“The store did put a stop to it, though. There are signs on the door saying it is not processing credit card applications at this time.”
The big difference, of course, is that there isn’t a resale market inside a Kmart. With no way to paper over the inevitable losses, the bank pulled the plug a lot quicker.
A miniature version of the larger sub-prime crisis indeed. Beautifully illustrates the effects of loans where borrowers expect (implicitly) default right from the beginning.
A miniature version of the larger sub-prime crisis indeed. Beautifully illustrates the effects of loans where borrowers expect (implicitly) default right from the beginning.
A miniature version of the larger sub-prime crisis indeed. Beautifully illustrates the effects of loans where borrowers expect (implicitly) default right from the beginning.
A miniature version of the larger sub-prime crisis indeed. Beautifully illustrates the effects of loans where borrowers expect (implicitly) default right from the beginning.
A miniature version of the larger sub-prime crisis indeed. Beautifully illustrates the effects of loans where borrowers expect (implicitly) default right from the beginning.
