ChickenLips

Falling Gasoline Prices Could Help Holiday Sales

Kathy, I'm sure all the business owners are praying and hoping that you are right. That's why I took the opportunity to spend the extra cash from my gas money budget and bought myself a Nintendo Wii for Christmas. But everybody else is still getting socks and underwear.

But seriously, even though gas prices are falling, how have people's attitudes changed towards debt? Pretty much all expensive gifts ($100+ based on a middle class income) are purchased on credit. How much credit is available to splurge on Christmas, and is the credit being offered like it was in the past? Are people willing to use credit again or have we shunned it like our President? One silver lining out of this whole disaster: salespeople don't hound me to open additional credit lines every 5 minutes like they used to!

A $40 Bottom in Oil?

I don't think it will fall below $60. OPEC will cut production faster than you can swipe your gas card if it does go below $60. Serious production cuts may even happen next year if the new administration gives credible tax breaks to solar/wind producers. Investors will probably sell their oil stocks and move the cash into solar stocks. This would make oil prices fall fast, but not if OPEC can help it.