If oil stays low, inflation will ease. Economic managers are scrambling to find any sign that the ongoing economic shake up is slightly correcting. We shall see. I'm not sure the smart money is betting on it.
Reuters: Oil's tumble set to lift Wall St at open
Stocks headed for a higher open on September's first trading day on Tuesday as oil prices slid sharply, easing concerns about the outlook for consumer and business spending.
Besides easing the toll of higher energy prices on the economy, lower oil prices will also buoy hopes of an easing inflationary pressures at a time when the U.S. Federal Reserve is working to revive growth by keeping interest rates low.
2 comments:
The Atlantic is full of possible replacements for Gustav. The OIL market will be a roller coaster till the hurricane season ends.
This is very true, meanwhile everybody is a little poorer today, stocks are bombing.
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