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Thrifts, or thrift stores, are retail establishments that sell second-hand goods, often at significantly reduced prices. They typically operate as nonprofit organizations, using proceeds to support charitable causes or community programs. Items sold in thrift stores can range from clothing and furniture to books and household goods. Additionally, thrifting promotes sustainability by encouraging the reuse of items, thereby reducing waste and environmental impact.

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Which financial institutions are often called thrifts?

There are many different types of banks in the United States which are classified depending on the types of banking services offered. Financial institutions known as thrifts got that name because they originally were involved in offering certificates of deposits and savings accounts to individual savers. The thrifts then used the deposits to make mortgage and other types of loans to the local community.The number of thrifts in the United States has declined greatly over the past 30 years due to the expansion of banking services. Banks such as thrifts that offered only a limited number of banking services were unable to compete with other banks offering a full line of services. In addition, the S&L crisis resulted in the failure of many thrifts that had concentrated on home mortgage lending.


What is a zombie thrift?

Thrifts are locally-based financial institutions that specialise in taking investments and issuing mortgages. Zombie thrifts were a phenomenon of the 1980-90's S&L crisis where thrifts with a net worth of less than zero continued to trade because their ability to repay their debts was assured by government guarantees. The thrift is dead but it keeps biting taxpayers.


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