2/13/2005

Japan's on a Roll

Japan’s on a Roll.
http://www.bloomberg.com/news/economy/economies.html

Who would have thought that because oil prices are down we would purchase more high priced ticket items? Well we do. With the decline in oil prices Japan had an increase in sales of flat screen TV’s and digital cameras. Not only are we buying more of their goods, but they benefiting from our recent interest hike. When the Fed raised interest rates a quarter of a percent, it increased Japanese investment income.

I guess that it makes people feel richer when gas prices are down so they may purchase different items than they would if gas prices didn’t change.

3 comments:

heather said...

Wahoo! I know I'm making out like a bandit. At a $1.89 a gallon, I know I saved like $3.00 from my January gas expense. My 40' plasma TV is being shipped overnight and ,boy, do I feel loaded.

Lana said...

I definently fill a little richer when gas prices are low. I'm so so used to spending more for gas, and have become used to figuring the higher price into my budge. So its nice when the price falls and I have a little extra money that I can spend on other things. No complaints here!

Tom said...

I don't if it is safe to correlate high priced ticket items with a decrease in oil prices. It may very well be, but it just may be some sort of flux in demand for that product because of some odd thing. Consumers may feel that they may be richer because of a drop in the price in gas, but the price has not fell that much to facilitate purchases in luxury items such as expensive TV's. Nope you can't extrapolate it.