| As a result, many of these people were left with no | | | | easy to create cash out of nothing, but a lot of |
| other option but to stop making regular payments on | | | | businesses popped up that claimed to be able to do |
| their mortgage notes or their car loans, and they had | | | | exactly that. For example, look at all the "cash for gold" |
| to go into default. Naturally, banks are not very lenient | | | | businesses that came out of nowhere during the peak |
| when it comes to these things, and many lenders | | | | years of the recession, in order to help people turn |
| were placed in the unfortunate situation of having to | | | | some of their old excess gold jewelry into a source of |
| sue these people for delinquency, or to place their | | | | liquidity. Prior to the crisis, this kind of thing - that is, the |
| homes under foreclosure, or to have a repo man seize | | | | buying and reselling of people's old gold jewelry - was |
| their vehicle. We say "unfortunate situation" because | | | | a business left either to jewelers, or to the more |
| contrary to what many people believe, banks do not | | | | disreputable pawn shop industry. Suddenly, however, |
| like to take legal action against people, because legal | | | | the field became filled with extremely competent |
| action is very expensive. | | | | merchants who had a lot of experience dealing with |
| The entire situation, it seems, could have been avoided | | | | gold, and were able to offer people somewhat |
| if people had been more creative with their options, | | | | reasonable prices for their old jewelry. |
| particularly when it comes to creating liquidity. It is not | | | | |