Aside from the potential negative geopolitical effects, detailed in session 141 (“What really worries me” 1/12/15), nothing! As I established kortsessions to counter ridiculous media obsessions and misdirection, I thought it appropriate to flog this theme again; because the media just will not let it go. Also, it is important to acknowledge the good work that the media does when I see it.
Gretchen Morgenson’s “Fair Game” column in this Sunday’s New York Times Business Section deserves that credit. Morgenson asks and deftly answers the question, “What’s so bad about cheap oil?” That’s why she makes the big bucks at the Big Apple’s iconic newspaper. If the media has you concerned about the impact of $50 oil on the U.S. energy sector and the overall economy, her article should provide a great sedative.
“The oil business and everything to do with it is a very small share of the economy. Could it be more than 5% of G.D.P. (G.D.P. = $17 trillion plus)? No, and the other 95% of the economy is saying, ‘Thank you very much.'” This just a tease. If you want more corroboration, there is lots more in the article … definitely worth your time.
BTW, they are beginning to go after copper, another market in the tank after binge buying by China in its growth spurt of several years ago … the collapse of copper, another sign the world economy is heading into the economic dumper (deflation). I just can’t get there yet.
What do you think?
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