Loans at Department Stores

Everyone has an answer for why we’re in this “credit crunch, financial meltdown, insert buzzword, etc.”  Turn on any cable news channel, or even the local news, and in between the car commercials you’ll find experts trading their theories for air time and a plug.  Experts, economists that have attended college longer than I’ve been alive, telling us why the economy is doing so terrible.

Depending on their slant/bias, the reasons will be:

Consumers - “Consumers shouldn’t have taken credit that was easily available to them.  They wanted a Lexus, but could only afford a Kia, and are forcing financial institutions that were just trying to make a buck into bankruptcy.”

Companies - “People are honest, hardworking folks.  It’s those greedy corporations and fat cats up North that prey on us.  Most people work 23 hours a day and don’t have the time to read contracts or understand what they’re signing.”

Government - “BUSH DID THIS!  People need to elect McCain/Obama/Santa Claus in November to raise employment, fix the economy, and make America great again.”

Big picture aside, generally speaking people have less money, work longer hours (if they can find a job), save less, and are much more concerned about their financial situation than they were 5 years ago.  Why do you think we’re in the situation we’re currently in?  Do you subscribe to one of those agendas above?

Dislike Bush?  Think John Q Public is stupid?  Greedy companies?

I have my own “quotes” on the topic.  It’s a conversation I witnessed.  It took place about 2 years ago at a major department store while I was checking out at the cash register with my wife.  Now that I think about it, it was the last time I went shopping with my wife.

Cashier (to customer in front of us): “Hi, did you find everything alright?”
Customer checking out: “Yes ma’am, I just needed these socks for my husband.”
Cashier: “What would our husbands do without us? (laughter)”
Customer: “Yeah, darlin’. (laughter)”
Cashier: “Your total is $6.53.  Honey, did you want to go ahead and sign up for STORE’s credit card today, you can save an additional 15% on your purchase?”
Customer: “I tried signing up for ANOTHER STORE’s credit card the other day, they said I was declined.  I might as well try my luck with you guys, too.  Why not?”

A credit card — financial contract — loan — was offered to a lady that bought socks.  On the other hand, the lady wanted to give it a try.  After all, that 29% APR on that store credit card would’ve saved her $1.

I blame the socks:  the solution.