Monday, 29 December 2014

http://www.safehaven.com/article/36235/will-cheap-oil-bail-out-the-consumer

It's amusing to witness nearly every bobble head in the financial media extolling the virtues of this current collapse in oil prices. WTI crude oil peaked at $147 per barrel in the summer of 2008; and then the stock market and economy spiraled into freefall shortly thereafter. Would it have been prudent for market strategist to claim that the plunge in oil and home prices in 2008 was a harbinger for a robust consumer to appear in short order? Were these same market gurus warning investors of a collapse in consumer spending when oil prices soared from $33 per barrel in the spring of 2009, to over $100 per barrel in July of this year?

1 comment:

  1. UK drillers no like.

    http://www.telegraph.co.uk/finance/newsbysector/energy/11315956/Third-of-listed-UK-oil-and-gas-drillers-face-bankruptcy.html

    W

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