Posted on 01/13/2016 12:17:38 PM PST by John W
U.S. stocks cratered to session lows by the final hour of trading Wednesday as worries over crude oil triggered broader fears over the global economy.
The S&P 500 was down 2.5%, the Dow Jones Industrial Average slid 2.3%, and the Nasdaq fell 3.4%.
"The market is extremely bearish right now," Craig Erlam, senior market analyst at Oanda, told TheStreet. "U.S. stocks are going to have a rough ride in the first quarter and oil is, of course, in for more shocks ... Risk appetite is going to be fairly low for the first few months of the year."
(Excerpt) Read more at thestreet.com ...
So consumers are no longer getting gouged by overpriced oil but that puts the economy into the tank?
Everything I was taught about basic economics was wrong.
Here we have lower energy prices and we suffer for it. When oil is at $90.00 a barrel our economy booms.
The old theory works as long as we are importing most of our oil.
The shale boom (or about to be former boom) has altered the equations.
Keynesians want to tell you that inflation is bad - and we need more of their fake, printed, fiat money pass through the hands of government.
But I literally know no one complaining about lower gasoline, food or computer prices.
Doesn’t make much sense to me, either, but when oil is $90/barrel, someone is making a lot of money on oil.
A few oil execs may have to sell some of their vacation homes, so it is a crisis.
Ain’t Obamanomics wonderful? Where the wind blows...
I don't suffer - I like being able to fill up my tank for 1/2 the price of 18 months ago. the only ones "suffering" are those Wall Street and oil-patch speculators who used huge amounts of cheap, unbacked, manipulated Federal Reserve-created debt to gamble on the shale oil and gas boom.
If you want to blame anyone for what is basically a business-cycle on steroids, blame our soviet-style monetary planning agency, the Federal Reserve.
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Lower gas is more than eroded by falling wages and real living inflation. Don’t know about most people but my gas spending is a fraction of the cost of groceries for my 6 member family.
The only part of the economy that was growing was oil and gas
I think Obama has them sacred to death but they cannot say it
People do not spend when there neighbors are getting laid off
Deflation?
I own a business where 90% of our customers are gas utilities. They are laying off big time. Western PA, West Virginia and parts of Ohio getting creamed by this and it has just really started.
Because oil prices are the result of a global recession. The market has held up well considering that China is catering.
What lower food prices?
It is not oil so much as uncertainty. Obamacare continuing to get heavier on business, coal mines shut down, no work on Keystone, water shut off to farms in California, EPA controlling all water; even what falls on your roof. I said when Obama became president we would, as Americans, get up some morning and say, “We can’t do business!”
What people always forget is there’s two sides to every economic story. There’s a lot of business in America that revolves around extracting oil, either directly or selling supplies to those that do. If oil is too cheap it becomes non-profitable to extract and all those businesses suffer. That’s economies are so cyclical. Too much supply drives prices down, which drives companies under, which lowers supply, which raises prices, which gets more companies in the game, which increases supply...
There’s a lot of “lather, rinse, repeat” in life.
A lot of posters here sound like democrats, blaming the rich. If as Freepers we don’t know the cause of this by now it is sad. You should be prepared. Look up deflation and how hyperinflation follows it and the causes. Beck covered this today quite well. Flame on, but be informed, not whiny.
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