How bad is it? Pawn shops, payday lenders are hot
#1
http://finance.yahoo.com/news/How-bad-is...2.html?x=0

Excerpt: "As the jobless rate inches up and the economic recovery sputters, investors looking for a few good stocks may want to follow the money -- or rather the TV, the beloved Fender guitar, the baubles from grandma, the wedding ring.

Profits at pawn shop operator Ezcorp Inc. have jumped by an average 46 percent annually for five years. The stock has doubled from a year ago, to about $38. And the Wall Street pros who analyze the company think it will go higher yet. All seven of them are telling investors to buy the Austin, Texas, company.

Is the economy still just in a soft patch? A hard patch? Will the market rise or drop? Even experts are just guessing. In investing, it's often better to focus on what you can safely predict, even if that safety is found in companies that thrive on hard times. One good bet: The jobless aren't likely to find work anytime soon. And companies profiting from their bad fortune will continue to do so.

Among them:

-- Stock in payday lender Advance America Cash Advance Centers (AEA) has doubled from a year ago, to just under $8. Rival Cash America International Inc. (CSH) is up 64 percent, to $58. Such firms typically provide high interest loans -- due on payday -- to people who can't borrow from traditional lenders.

-- Profits at Encore Capital Group, a debt collector that targets people with unpaid credit cards bills and other debts, rose nearly 50 percent last year. Encore has faced class action suits in several states, including California, over its collection practices. The Minnesota attorney general filed a suit in March. No matter. The stock (ECPG) is up 59 percent from a year ago, to more than $30.

-- Stock in Rent-A-Center (RCII), which leases televisions, couches, computers and more, is up 57 percent from a year ago to nearly $32. Nine of the 11 analysts covering the company say it will rise further and that investors should buy it.

The idea of investing in companies catering to the hard-up might not be palatable to some people. But it is profitable..."
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#2
AN ASIDE:
Really: Don't want to hijack so am going to start a new Topic titled "News: How's that workin' for us?"
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#3
I hear that labor rates for under the table cash workers are lower than ever right now, and the supply more.
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#4
(07-10-2011, 09:24 AM)PonderThis Wrote: I hear that labor rates for under the table cash workers are lower than ever right now, and the supply more.

Yep. I know (of) a Union plumber who is doing side jobs way below customary rates. He works for cash only.
Well, at least he is working. And those with money are taking advantage of this economy by seeking out those who will work for less. Because he pays no taxes on this under the table money, our national economy suffers. Because he is not covered by any kind of insurance, he risks injury that may keep him from working. If he suffers serious injury, he will "work the system at the emergency room" and it will cost us all.

In the end, we do no favors by hiring people under the table. I will call a legitimate business, pay the price, and the system is better served all around.

PS: Tried to find a tree service in the valley who is "union". Could not. That too, is a problem.



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#5
(07-10-2011, 09:44 AM)Wonky Wrote:
(07-10-2011, 09:24 AM)PonderThis Wrote: I hear that labor rates for under the table cash workers are lower than ever right now, and the supply more.

...Because he is not covered by any kind of insurance, he risks injury...

Ultimately the home owner is responsible, however. Workmens Comp always makes sure somebody pays when it involves labor.

(Now, when it comes to whether Workman's Comp will be fair to that or any other injured worker, or will ever adequately make them "whole", that is an entirely different subject.)
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#6
(07-10-2011, 09:48 AM)PonderThis Wrote:
(07-10-2011, 09:44 AM)Wonky Wrote:
(07-10-2011, 09:24 AM)PonderThis Wrote: I hear that labor rates for under the table cash workers are lower than ever right now, and the supply more.

...Because he is not covered by any kind of insurance, he risks injury...

Ultimately the home owner is responsible, however. Workmens Comp always makes sure somebody pays when it involves labor.

(Now, when it comes to whether Workman's Comp will be fair to that or any other injured worker, or will ever adequately make them "whole", that is an entirely different subject.)

Be serious!
Workman's comp on money paid under the table?
And the homeowner is responsible? Yea, if that guy working under the table has the money for a lawyer (paid up front) and can wait the several years for a court date. Remember too, the homeowner will have an attorney.

Damn Ponder, it's illegal to work for money "under the table". Try and press for any "rights" after engaging in illegal activities.

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#7
Quote:Because he is not covered by any kind of insurance, he risks injury that may keep him from working. If he suffers serious injury, he will "work the system at the emergency room" and it will cost us all.

Really? that's a major concern for you? Why, the same plumber who doesn't have insurance because he is not working could also end up in the emergency room from his Tuesday night softball game , a car wreck or any other endeavor.
And what do yo mean .."work the system at the emer room" it's not free to go there unless you simply don't pay and ruin your credit while the hounds from hell collection agencies pound on your door.


Quote:In the end, we do no favors by hiring people under the table. I will call a legitimate business, pay the price, and the system is better served all around.

For the most part I can't argue with that but each circumstance is different. There are those who work under the table because they are not licensed or to get away from paying for permits.
And then there are guys like your plumber who might be trying to save his house.

As a side note... For a long time there was no one checking for licenses and non licensed workers were mostly unchallenged. But the contractors association finally got smart and hired someone to go from job to job and check workers for their license.




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#8
(07-10-2011, 10:04 AM)Wonky Wrote: Be serious!
Workman's comp on money paid under the table?
And the homeowner is responsible? Yea, if that guy working under the table has the money for a lawyer (paid up front) and can wait the several years for a court date. Remember too, the homeowner will have an attorney.

Damn Ponder, it's illegal to work for money "under the table". Try and press for any "rights" after engaging in illegal activities.

I have more personal experience here than I want to admit, and yes, the homeowner is indeed responsible. It probably cost me $100,000 out of pocket before it was all over, if I was to add up all the ramnifications.
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#9
(07-10-2011, 10:13 AM)tvguy Wrote:
Quote:Because he is not covered by any kind of insurance, he risks injury that may keep him from working. If he suffers serious injury, he will "work the system at the emergency room" and it will cost us all.

Really? that's a major concern for you? Why, the same plumber who doesn't have insurance because he is not working could also end up in the emergency room from his Tuesday night softball game , a car wreck or any other endeavor.
My only major concern is the size of my....of my pension check.
And what do yo mean .."work the system at the emer room" it's not free to go there unless you simply don't pay and ruin your credit while the hounds from hell collection agencies pound on your door.
I have no idea what I mean. My monkey typed most of this.



Quote:In the end, we do no favors by hiring people under the table. I will call a legitimate business, pay the price, and the system is better served all around.

For the most part I can't argue with that but each circumstance is different. There are those who work under the table because they are not licensed or to get away from paying for permits.
And then there are guys like your plumber who might be trying to save his house.

As a side note... For a long time there was no one checking for licenses and non licensed workers were mostly unchallenged. But the contractors association finally got smart and hired someone to go from job to job and check workers for their license.

So, we get what we pay for, take our chances, and hope "we" don't get pregnant.

Don't reply using colors. I will get sick and puke all over myself and the dog.
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#10
(07-10-2011, 12:12 PM)PonderThis Wrote:
(07-10-2011, 10:04 AM)Wonky Wrote: Be serious!
Workman's comp on money paid under the table?
And the homeowner is responsible? Yea, if that guy working under the table has the money for a lawyer (paid up front) and can wait the several years for a court date. Remember too, the homeowner will have an attorney.

Damn Ponder, it's illegal to work for money "under the table". Try and press for any "rights" after engaging in illegal activities.

I have more personal experience here than I want to admit, and yes, the homeowner is indeed responsible. It probably cost me $100,000 out of pocket before it was all over, if I was to add up all the ramnifications.

So, the lesson is: "Look for the Union Label"!

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#11
There are more lessons to be learned here than that. Smiling
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