Bob has an idea on how to make some extra cash. He pawns $30 at the local pawn shop for $15. Then he goes to the pub next door and sells the $30 pawn ticket to Jim for $20. It looks like both make money on the deal. Is that true? Who gets the short end of the transaction? Is it Bob, Jim, or the pawn shop?
(In reply to What is a pawn shop?
From WIKIPEDIA (http//en.wikipedia.org)
"A pawnbroker is a person who offers loans to individuals who use their personal property as collateral. These items are called pledges or pawns. The word pawn is derived from the Latin patinum, meaning cloth or clothing. Typically, most people's primary assets were their clothing. The place of business of a pawnbroker is called a pawnshop."
Normally pawnbrokers will only "buy" something that they can easily resell. Jewellry, appliances, IPods etc. The person pawning the item typically is in need of money - fast. Thus pawning money makes very little sense, and the Bob of the problem needs to rethink his logic.
Posted by Leming
on 2006-04-11 17:05:06