The New Recession Goes Old School

This holiday season an old standby is back in the era of hyper-derivatives and securitization: the good ol' layaway. More and more stores are adding it back this shopping season, figuring interest free installment payments are better than inventory sitting unsold on shelves.

Toys R Us Inc. is introducing a layaway program for larger-ticket items such as bikes and cribs ahead of the holiday season, the company said Monday.

The largest U.S. toy retailer said the program is effective immediately in stores nationwide. Customers can put a variety of items on hold and make a series of payments until the item is paid in full.

Layaway programs are financing agreements in which retailers -- without charging interest -- hold merchandise for customers until they have finished paying in installments.

Popular during the Great Depression, layaway had become largely a thing of the past before the recession hit. But Sears expanded its program for the holidays last year, and due to its popularity Sears and Kmart introduced an online option this year.

Retailers who have introduced the programs see them as a way to keep customers buying in a time of tight credit and other economic problems. Toys R Us CEO Gerald Storch said his company's customers were requesting a layaway program.

Yes, stores are that desperate this holiday shopping season for customers and sales that they are turning to layaways to get you to buy, buy, buy.

Sometimes the simplest solutions are the best, it seems. But it goes to show you just how bad off the holiday shopping season is expected to be over the next two months.