You'd think we were in the midst of an economic downturn. Default rates on mortgages are soaring, and there is talk of a major bailout of people who are having trouble keeping up with their mortgages.So how then, I ask, is it that people can apparently still afford to blow money on new televisions, video games, and all kinds of other consumer electronics knickknacks?
According to Sony (NYSE: SNE) CEO Howard Stringer, the shaky economy "has not affected electronics in the U.S ... Black Friday turned out to be very good for consumer electronics sales, and very good for PS3 (PlayStation 3) sales, PSP (PlayStation Portable) sales and beyond."
If people are struggling so much, why are they still spending so much money on PS3s and PSPs? Before we commit to a giant taxpayer funded bailout, shouldn't we look for signs that consumers are cutting corners themselves? Why are we bailing out people who are still spending on consumer electronics like drunken sailors on shore leave?
It's all very confusing. But for now it looks like, mortgages be damned, people still want to buy video games.
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