This is economic gibberish. Granted, some oil workers may be laid off or see their wages or hours cut, and oil producers may have to tighten their belts for a while, after years of rolling in the clover. But hundreds of millions of American consumers who don’t depend on oil patch will have a lot more money in their pockets because of lower gasoline and oil prices. I’m currently enjoying an extra $300 or so of monthly savings in gasoline and home heating oil expenses, and I’m not planning on burying that dough in a can in the back yard. We’re actually seriously considering a long vacation, something we haven’t indulged in for over three years, so the lodging industry, restaurants, and others will benefit from my (and millions of others) improved cash position.
We may even give some thought to upgrading our wheels; both family cars have well over 200,000 miles on them. And we probably won’t be looking at some econobox tin can deathtrap.
The point is, the money most people save on fuel will be spent on other things, benefiting other sectors of the economy.
U.S. Equity Futures Flat as Franc Soars on Swiss Move
"Global markets were thrown into turmoil on Thursday as a shock move by Switzerland to abandon its more than three-year-old cap on the franc sent the currency soaring and Europe's shares and bond yields tumbling.....As investors scrambled for traditional safe-haven assets, there were new record low yields for Germany's government bonds and gains for the yen and gold. "This is extremely violent and totally unexpected, the central bank didn't prepare the market for it," said Alexandre Baradez, chief market analyst at IG in France. "It's sparking panic across all asset classes. It suddenly revives the risk of central bank policy mistakes, right when central bank action is what's keeping equity markets going."...Adding to the nervous mood, oil has also resumed its slide. Brent crude fell back to $47.50 as a rebound by copper and other metals after their big falls on Wednesday also started to wane.
Mark your post an come back to see if its true in six months.
I disagree with your optimism. But we will see.