How low can we go
Government issued economic statistics are tarnished with political spin. Financial gimmickry by central banks may affect stock prices but cannot produce real wealth. A more accurate measure of economic conditions is the price of industrial commodities. The price of steel, copper, aluminum, lumber and oil correlate with economic activity. If the world economy is in recession or depression the prices of commodities is soft. Forget what Obama says about the economy, check the price of copper.
The Fed will step in more reluctantly than the Chinese govt. Also our govt won’t execute short sellers, although Obama is probably envious. The PTB would not care one way or another if Obama ends up with the best economy ever or not, but they probably won’t let him take the fall for the inevitable collapse. So we are not going to have the inevitable collapse now, besides the ride is really just starting. Don’t fight the Fed even if the Fed hasn’t made up its mind.
“How low can we go”
Unless you are too old to ride it out, I wouldn’t worry about it. If the market tanks ‘forever’, then there’s no future for the USA as we know it. At that point, money isn’t likely to help you.
WTI down 5% at 10pm ET.
Zero.