I think that one of the reasons why buying an expensive television on credit makes one feel wealthy is because we live in a world full of abstractions. The majority of my banking is done through my bank's web-site. The only checks I write are for my doctor appointments and monthly rent. I rarely pay for anything in cash, preferring to use debit or credit cards (I always pay my balances in full). My pay-checks are direct-deposited to my bank. It's not much of a stretch to say that our money is literally floating our in the ether. I have six-figures in cash savings, but have never held in my hands more than $1,000. It takes discipline to understand, respect, and value something which is so intangible.

I think that when people splurge on expensive toys, it reflects a desire to have a tangible representation of wealth. I don't think this is anything new. But it's easier to spend frivolously when debt and savings are just numbers on paper or, more increasingly, pixels on a computer monitor.