Oil price fall –> petrol (gasoline) price fall –> good for the economy

This post is going to be in serious danger of turning into a rant. I’m gonna have to be calm and controlled.

When oil prices were climbing I was persistently lamenting the impact this was going to have on the US (and global) economy. So its only right that I note the falling price of oil is a positive development now.

OK … now to tread on potential rant-inducing territory.
Those claiming ‘the price of oil is falling b/c the economy is in trouble, this is not good news at all’.
2 responses:
1. Well, d’uh.
2. You are mixing up cause and effect. Its a cycle, its a market, lower input price will be a positive for the economy going forward.

OK. Rant avoided, but more dangerous ground to cover.

This article:
The Coming Oil Crash
http://www.foreignpolicy.com/articles/2012/06/19/the_coming_oil_crash

Dude – the price has already fallen something like 30%. You are a bit late. This sort of headline has me beginning to look for a bottom.

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