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| Dear Jim: There's an aspect to the credit crisis that I think has yet to rear its ugly head. I suspect millions of people have purchased furniture, electronics, or appliances on no-money down, no-payments till 2009, 2010, 2011, etc. deals. If many of the same people that are facing foreclosures are locked into these deals, how would a retailer or credit provider have any recourse that's worth a fraction of the paper it's written on? Is there any way to determine which companies are most exposed to this type of risk, and secondarily, how they are planning to address the defaults? --Tom Cramer says: Look on the bright side: Wal-Mart Wal-Mart Stores Inc WMT 55.22 0.42 +0.77% NYSE Quote | Chart | News | Profile [WMT 55.22 0.42 (+0.77%) ] doesn’t have this problem. Credit card companies do, though. Sell Capital One Capital One Financial Corp COF 47.21 -1.09 -2.26% NYSE Quote | Chart | News | Profile [COF 47.21 -1.09 (-2.26%) ] and buy WMT. Read more of Jim Cramer from Mad Money plus get the rest of this article here... Last edited by Qbins Missile Crisis : 04-14-2008 at 09:02 AM. |
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