Here's a recession indicator I'm watching closely. Pawn shops.

EZCORP $EZPW just reported $403 million in pawn loans outstanding worldwide, up 31% from a year ago.

At its existing U.S. stores, balances rose 13%.

FirstCash grew U.S. pawn loans 14%, its 13th straight quarter of double-digit growth at existing stores.

When people pawn their stuff to get by, late payments come next. A recession isn't far behind.