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Jim's Best Buy Bonanza discusses BBY's quarter as proof of the health of the consumer.

I beg to differ.

Every weekend, I get these Best Buy (NYSE:BBY) circulars running giant financings every week.

Here's what they look like: Buy any plasma tv more than $999, and make no interest and just 1% principle payments for 3 years!.

Heres' their disclosure info on the financing -- just Prime Rate + 14.4 percentage points on fixed, and prime plus 17.4% on variable!

No Interest for 36 Months on Home Theater $999 & Up

Required minimum monthly payment is greater of $10 or 1% of balance plus billed finance charges plus any late fees (if applicable). Interest will be charged to your account from the date of purchase if plan balance is not paid in full within 36 months or if minimum monthly payments are not made.

Deferred Interest Info: Program A: Variable Standard APR = Prime Rate + 14.4 percentage pts. (22.65% as of 09/01/2006).
Variable Default APR = Prime Rate + 18.4 percentage pts. (26.65% as of 09/01/2006). Standard Min. APR 19.8%. Default Min. APR 23.8%.

Program B:

Variable Standard APR = Prime Rate + 17.4 percentage pts. (25.65% as of 09/01/2006). Variable Default APR = Prime Rate + 21.4 percentage pts. (29.65% as of 09/01/2006).
Standard Min. APR 23.15%. Default Min. APR 27.15%.

Unfortunately, the consumer still accrues interest over the entire 36 months -- they just defer them that whole time. Then, in month 37, they must make the minimum payment (1%) of either 22.65% or 25.65% interest on the full purchase price.

If anything, it shows that consumers are not being very frugal or responsible with their spending. This shows exactly why the savings rate has slid to a negative.

A friend noted:

I’m still wondering about the cash out refi.  I could use some nice speakers to go with my flat screen, but I’m a little short right now.  If I could just pull some money out of the equity in my flat screen, I’d be set.  Can you get a 30 year?  That would be sweet.

Source: Why I Believe Cramer's Wrong on Consumer Health