Posted on 10/17/2014 9:03:36 PM PDT by Abakumov
Steep stock market corrections often create shrouds of pessimism that do bad things to people’s brainpower. And one of the absolutely stupidest things I have heard in recent weeks is that the recent drop in oil prices is bad.
You heard me right. Serious people on financial television are saying lower oil prices are a signal of worldwide economic collapse. Here at home that translates to recession, deflation, a profits collapse and rising unemployment.
I’ve been around for a while, and I’ve seldom heard such gibberish.
The latest stock market scare stems from a bunch of fears — such as the possible spread of Ebola, economic slowdowns in Europe and Asia, and deflation worries. And when the stock market decides to correct, any reason will do. We must respect the wisdom of the market.
But the recent $20 drop in crude oil is an unambiguous good thing for the American and world economies. Unambiguous.
(Excerpt) Read more at humanevents.com ...
Uh, no, lower prices are a sign of impending economic renaissance and the death of Islam.
ANYTHING will be trundled out as a way to make excuses about how alllll the pieces were in place for a spectacular Obama economic success if not for just the dastardly and totally unforeseen...........
(Fill in the blank)
They’ve stuck to this silly script for six years.
Lower prices due to increased supplies = good times.
Lower prices due to decreased demand = an indicator of a weak economy.
The effects on OPEC nations = a bonus. The effects on the Canadian economy = painful — but, could be worth it.
They could be. No matter what the cause(s)...we WILL see a worldwide economic collapse.
I wonder how many people are praying with sincerity yet?
Drill baby, drill!
Larry Kudlow: Serious people on financial television are saying lower oil prices are a signal of worldwide economic collapse. Here at home that translates to recession, deflation, a profits collapse and rising unemployment. I’ve been around for a while, and I’ve seldom heard such gibberish... the recent $20 drop in crude oil is an unambiguous good thing for the American and world economies. Unambiguous.
Frac baby Frac!
“Lower prices due to increased supplies = good times.”
I agree with your post but there is an issue still to be settled.
Some of the new extraction methods depend on higher (than past) crude/Nat’l gas prices to justify their higher costs. Once the new supply and demand picture evens out, it will be interesting to see what methods still make sense. THAT may mean yet another adjustment.
I have watched Kudlow for 3 decades may be more.
I can’t remember a single instance when he was not super bullish on the economy.
Lower prices due to increased supplies = good times.
Increased supply has to do with fracking.
If oil prices were very high right now, our economy would be in horrible shape. Obama and they left fight fracking. It’s one of the few things that have kept the bottom dropping out for the Obama administration. Dems are against it but it’s keeping the clown afloat.
That’s true, he’s a cheerleader in some ways. I think he is right this time though.
One econ writer likened these reduced gas prices to a $684 B stimulus, iirc.
Yes but not one that will be doled out to Obama cronies and hacks like the last one
One econ writer likened these reduced gas prices to a $684 B stimulus, iirc.
I wouldn’t doubt it. Obama should thank all those he fought against.
The bad news is that we know it’s not going to last — especially since Obama has made it so hard for future development.
$83 is just right. Low enough to give a boost to the economy and put a crimp in Russian and Iranian aggression, yet high enough to keep the fracking boom alive.
Just interested.
Actually the Fed’s QE infinity and zero interest rate policies have caused huge distortions in pushing yield starved investors into more and more risky investments. If Ebola fades, there will be another black swan event. The next crash in financial markets will make the 2008 fiasco look mild by comparison.
The Keynesian economic theory is wrong again. Which is that government spending with monopoly money can create a robust economy in the long term. What good is cheap gas if there is no demand for it. What good are cheap bank loans if there are not enough entrepreneurs willing and able to borrow.
Kudlow has been wrong more often than he is right.
The Austrian economic model rules!
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