"its because of credit cards. most people absorb these higher gas costs, because they buy gas on credit, and it just gets rolled into their debt load."
That well may be, but prices have been high long enough to hit very hard on those folks who practice this without being able to afford it. I've had to raise prices on our company services more than three times to try and compensate. My credit card bills keep coming in and I pay them off (for the most part).
Just an observation here in a county of Florida that's mostly middle class. I've seen no slow down in purchasing or buying of smaller cars. ???
Again, I am no economist.
true. If they are playing the credit game-somehow they are still qualifyting for 700k homes all around me. And the restaurants are full Sunday through Saturday.
I'm still waitng for Steve Forbes' prediction of the $35 per barrel cost for oil.
"I'll make a bold prediction: I think in 12 months, you're going to see oil down to $35, $40 a barrel," Forbes said. "In the meantime, it's a huge drain, more a psychological drain (on the economy), but it's not forever. This thing is not going to last."
- Steve Forbes - August 2005.
Used SUVs are dropping in price, the larger they are the faster they are dropping.